Bureau director Robin Lott talks about the history of Michigan 529 plans, the advantages of 529 plans and the different varieties that Michigan offers.
Want to see more videos about Michigan's 529 plans? Visit our YouTube channel.
There are two types of 529 college savings plans: prepaid tuition plans and savings plans:
Prepaid Tuition Plans allow for the pre-purchase of tuition based on today's rates and then paid out at the future cost when the beneficiary is in college. Performance is often based upon tuition inflation. Prepaid plans may be administered by states or higher education institutions.
Savings Plans are different in that your account earnings are based upon the market performance of the underlying investments, which typically consist of mutual funds. Savings plans may only be administered by states.
ABLE accounts allow eligible individuals the ability to save for qualified disability expenses and provide a saving/investment tool that are excluded from income and/or asset calculations for public assistance programs. MIABLE is Michigan's 529 (A) plan.
How are Michigan's direct sold 529 plans, MET and MESP, similar to each other?
| Both | MET | MESP | |
| Open with as little as $25 | X | ||
| Accepts rollovers from other 529 programs | X | ||
| Ability to contribute with Payroll Direct Deposit or ACH | X | ||
| State income tax deduction | X | ||
| Earnings are tax exempt for qualified expenses | X | ||
| Funds can be used at any qualified institution | X | ||
| Low impact on financial aid eligibility | X | ||
| Transferable to immediate family members | X | ||
| Prepaid Tuition | X | ||
| 22 Investment options | X |
An overview of Michigan's 529 savings plans. A focus will be on Michigan's two direct sold 529 college savings plans, the Michigan Education Trust and the Michigan Education Savings Program.
Learn more about Michigan's 529 plans on our YouTube Channel.
Learn more about each program by visiting their website.
Want MI 529 to attend your event? Staff are available for presentations (virtual or in-person) or to set-up a display at your event. We attend many different types of events from community resource fairs, back-to-school events, employer benefit fairs and more. If you are interested in scheduling a presentation or want us to participate in your event, please call 800-638-4543 or email TreasMET@Michigan.gov .
The mission of MiABLE is to encourage and assist the saving of private funds to help persons with disabilities cover costs that support their health, independence and quality of life.
