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Michigan College Savings Plans Updates 2005

Learn about the latest updates for college savings plans in Michigan for 2005, including new MET marketing campaign, enrollment dates, contract options, investment choices, and tax benefits. Stay informed on MET and MESP variations and make the best choice for your child's future education.

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Michigan College Savings Plans Updates 2005

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  1. Saving for College in Michigan

  2. WHAT’S NEW • New MET Marketing Campaign “Tomorrow’s Tuition . . . Set with MET” • 2005 MET Enrollment - Sept. 1 to June 15 • Discounted Processing Fee for Online Enrollment • Contract Prices now through 12th Grade • Monthly Purchase Option - 15 year duration • Monthly Purchase Early Payment Discount

  3. WHAT’S NEW • MET Statute now allows termination or transfer after 1/2 way point (will need Board approval) • MESP Match Funds Approved for 2004-05 • MESP Account Owner can be a Trust • Net Contributions now deductible • Recapture provision modified • FIA will disregard 529 savings for public assistance eligibility

  4. MET Contract Options Three Types of Contracts: Full Benefits Limited Benefits Community College MESP Investment Options Three Investment Options: Managed Allocation 100% Equity Guaranteed

  5. Similarities • Benefits of Internal Revenue Code Section 529 • State & Federal Tax Exemption on Qualified WD’s • Purchase Contract/Open an Account for Any Child • State Income Tax Deduction for Contributions • Transfer Contracts/Accounts Among Siblings • Gift Tax Exemption • Payroll Deduction or ACH

  6. Differences • MET - Prepay Tuition & Mandatory Fees • MESP - Save for all Qualified Higher Education Expenses • MET - Pays Tuition & Mandatory Fees at MI Public Two or Four Year College (Refund amount Portable to attend MI private or Out-of-state college) • MESP - Can Be Used to Pay for Total Qualified Expenses at Any College in Country

  7. Differences (cont.) • MET - Prepay with Monthly Installments, Payroll Deduction, ACH or Lump Sum - Ignore Rising Tuition • MESP - Save as Much as $235,000. Deposit as Little as $25 ($15 if payroll deduction)

  8. Differences (cont.) • MET - Purchase for MI Child Newborn to 12th Grade, Allowed 9 Years to Use Contract • MESP - Open Account for Anyone; No Age Limit, No Residency Requirement • MET - Recognized as Student “Resource” for Financial Aid • MESP - Recognized as Parental Asset for Financial Aid

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