LANSING, Mich., Nov. 9, 2010 /PRNewswire/ -- The Michigan Department of Treasury and TIAA-CREF Tuition Financing, Inc. announced a third reduction in fees since the launch of MESP in November, 2000.
Effective October 25, 2010, the total annual asset-based fee, the only fee account owners pay on an MESP account, was reduced from 0.45% (less than one-half percent a year) to 0.35% per year. The Principal Plus Interest Option continues to be offered without a fee. The total annual asset based fee covers the cost of operations, investment management and marketing of MESP. There are no other fees associated with MESP including broker commissions. The reduction in fees will help more than 105,000 MESP account owners.
"MESP continues to strive to be a low cost 529 college savings plan so more of our investors' funds can go toward their college savings goals and less toward administrative costs," said Pamela McNulty, director of MESP. "TIAA-CREF is committed to working with the Michigan Department of Treasury to help families and students reach their education vision and accomplish their college savings goals."
MESP also recently unveiled a new website with enhanced e-Delivery options, easier access for account owners, and new webinars for interested families seeking to learn more about the Program. Visit www.misaves.com to learn more about these new features and benefits, which include:
- e-Delivery of statements and disclosure information
- Online withdrawals
- College Savings Planner to project potential tax savings and college savings goals
- Webinar opportunities for families to learn about MESP
- New iPhone and Android applications available
The Michigan Department of Treasury and TIAA-CREF Tuition Financing, Inc. are also celebrating MESP's 10-year anniversary. The Program has grown close to $2.5 billion in assets (as of November 4, 2010) since the launch of MESP in November, 2000.
Kiplinger, the financial trade publication, has also chosen MESP as one of the "Top 529 Plans in the Nation" for 2010*. Besides low fees, Michigan 529 plans are the only 529 plans that offer Michigan residents a potential state income tax deduction on Program contributions.
To learn more about MESP, visit www.misaves.com or contact us at 877-861-6377.
*Based on the comparison of Investment Options, fees and expenses, state tax benefits and other features. Michigan was noted for having a low risk option appropriate for conservative investors. (June, 2010) C48754
Consider the investment objectives, risks, charges and expenses before investing in the Michigan Education Savings Program. Please visit www.misaves.com for a Disclosure Booklet containing this and other information. Read it carefully. Account value in the investment options is not guaranteed and will fluctuate based upon a number of factors, including general market conditions.
Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.
The tax information contained herein is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding tax penalties. It was written to support the promotion of the Michigan Education Savings Program. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
C49385 TIAA-CREF Tuition Financing, Inc., MESP Program Manager
SOURCE Michigan Education Savings Program