College & Career

Michigan

Michigan Education Savings Program
5 Cap Ratings
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Summary

The Michigan Education Savings Program is similar to other TIAA-managed 529 savings programs. The Program features an age-based option, four multi-fund options, a single fund option and a principal protection option.

Program Details
  • Summary: The Michigan Education Savings Program is similar to other TIAA-managed 529 savings programs. The Program features an age-based option, four multi-fund options, a single fund option and a principal protection option.
  • Program type: Savings
  • Program manager: TIAA-CREF Tuition Financing, Inc.
  • State residency requirements: None
  • Maximum contributions: Accepts contributions until all account balances in Michigan's 529 plan for the same beneficiary reach $235,000.
  • Minimum contributions: $25, or $15 per pay period via payroll deduction.
  • Age-based investment options: The Age-Based Option is offered in 3 different risk levels (Aggressive, Moderate, and Conservative), each containing 9 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age and later reassigned to more conservative portfolios as the beneficiary approaches college age.
  • Static investment options: Select among 4 multi-fund options (the International Equity Index Option, the Global Equity Index Option, the 100% Fixed Income Option, and the Balanced Option), the U.S. Equity Index Option and the Principal Plus Interest Option
  • Underlying investments: TIAA-CREF institutional mutual funds. The Principal Plus Interest Option is invested in a funding agreement with TIAA-CREF Life Insurance Company that guarantees principal and a minimum annual rate (actual rate is declared annually).
  • Enrollment or application fee: None.
  • Account maintenance fee: None.
  • Program management fees: 0.06% manager fee plus 0.05% state fee. No fee for the Principal Plus Interest Option.
  • Expenses of the underlying investments: 0.07% - 0.17%. None for the Principal Plus Interest Option.
  • Total asset-based expense ratio: 0.20% - 0.30%. None for the Principal Plus Interest Option.
  • Program match on contributions: Michigan matching grants based on MESP contributions have been discontinued for the 2009-2010 year. In prior years, a Michigan resident with adjusted gross income of $80,000 or less and a beneficiary under seven years old could apply for a one-time matching grant of $1 for every $3 contributed, up to a maximum $200 grant.
  • State tax deduction or credit for contributions: Contributions to a Michigan's 529 savings plan of up to $5,000 per year by an individual, and up to $10,000 per year by a married couple filing jointly, are deductible in computing Michigan taxable income. Contributions must be reduced by qualified withdrawals during the year for purposes of determining the amount that may be deducted. Rollover contributions are not deductible, according to the Michigan Department of Treasury. Contribution deadline is December 31.
  • Web site: Click here to visit
  • Telephone: 1-877-861-6377
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