Michigan Education Savings Program recognizes 20-year milestone of 529 college savings plans

Lansing – In August 1996, Congress established a new way to help Americans save for higher education as it created Section 529 of the Internal Revenue Code.

Four years later, the Michigan Department of Treasury launched the Michigan Education Savings Program, a 529 plan that has helped thousands of families save for higher education expenses.

“This is a milestone worth noting – if not outright celebrating – for Michigan families who are saving for college,” said Robin Lott, MESP administrator for the Michigan Department of Treasury.

“The anniversary is also an ideal time to remind families who have yet to begin saving for higher education how simple it is to open an account and that it comes with a host of features, including online enrollment, online account access, payroll deduction and e-gifting for contributions from grandparents and others,” she said.

To further raise awareness of the importance of college savings, TIAA-CREF – which has managed MESP on behalf of the Michigan Department of Treasury since the program’s inception in 2000 – is offering a monthlong 529 Anniversary Sweepstakes.

The giveaway is an opportunity for a family to win $529 toward a college savings plan managed by TIAA-CREF, which manages 529 plans in 10 states.

For official rules, prize details and to enter, visit www.529turns20.com. Online entries must be submitted by Aug. 31, 2016, and one winner will be randomly selected from among all entries in September. No purchase is necessary.

Nationally, with more than 11.7 million 529 college savings plan accounts totaling more than $235.4 billion as of March 31, 2016, according to Strategic Insight, it’s clear that 529 college savings plans have had a tremendous impact on how Americans save for college.

MESP alone has more than 230,000 accounts with combined assets of $4.43 billion.

MESP is one of three Michigan Section 529 plans, along with the Michigan Education Trust (MET), a prepaid tuition plan that allows for the purchase of tuition based on today’s rates, and MI 529 Advisor (MAP), a savings plan offered through financial advisers that offers various investment options.

Each plan offers Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on earnings if account proceeds are used to pay for qualified higher education expenses.

MESP can be used at any eligible college, university or trade school in the nation and some abroad for a variety of qualified higher education expenses, including tuition, fees, certain room and board costs, books, supplies and equipment required for enrollment.

More information about MESP is available at MIsaves.com or 877-861-6377.