New Report Recognizes Michigan College Savings Program Among Nation's Best 529 Plans
Kiplinger's Personal Finance gives MESP top rankings*
LANSING, Mich., Nov. 5, 2010 /PRNewswire/ -- The Michigan Education Savings Program (MESP), Michigan's direct- sold 529 college savings plan, was ranked among the nation's five best Section 529 plans according to Kiplinger's Personal Finance magazine.
MESP is "best for conservative investors," according to the Kiplinger's survey, which is based on an analysis of investment performance figures for thousands of 529 portfolios. "The Michigan Education Savings Program, run by TIAA-CREF Tuition Financing, Inc, is ideal for investors who shy away from putting their college savings in the stock market," Kiplinger's Associate Editor Thomas M. Anderson reported. "The plan (MESP) has a savings option that guarantees principal and a minimum annual interest rate based on a Treasury note index. That option doesn't charge an annual fee. The plan also offers portfolios of TIAA-CREF mutual funds that are tilted more toward bond funds** than most other 529-plan offerings. Those options cost a very low flat fee of 0.45% annually."
MESP is administered by the Michigan Department of Treasury who chose TIAA-CREF Tuition Financing Inc. to manage MESP in November, 2000. Since then, MESP has helped over 105,000 families invest over $2.3 billion towards college (as of October 5, 2010). The state renewed the contract with TIAA-CREF Tuition Financing, Inc. for a two year renewal for a second time in March, 2010. TIAA-CREF Tuition Financing, Inc. is one of the nation's largest 529 program managers and currently manages nine state programs across the nation, including MESP.
"We are committed to providing families with a low cost, flexible college savings plan," said Michigan's State Treasurer Robert J. Kleine. "We are also pleased to announce that the annual administrative fee for MESP will be reduced again, to 0.35% effective October 25, 2010, keeping MESP a low fee plan."
MESP is one of three Michigan Section 529 plans, all of which offer Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on any earnings if account proceeds are used to pay for qualified expenses. MESP can be used at any eligible college, university or trade school in the nation for a variety of qualified expenses including tuition, mandatory equipment, fees, certain room and board costs and books. Limitations apply. See the MESP Disclosure Booklet for details.
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)
**Contributions under this Investment Option are allocated to the Funding Agreement issued by TIAA-CREF Life to MESP. The guarantee is to MESP, not directly to account owners. The minimum rate over the term of the Funding Agreement will not be less than 1% nor greater than 3% and will be reset each year beginning on October 1. Please refer to the Disclosure Booklet for more detailed information regarding the calculation on the minimum rate.
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.
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.
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.
Non-qualified withdrawals may be subject to federal and state taxes and the additional federal 10% tax.
C49037 TIAA-CREF Tuition Financing, Inc., MESP Program Manager
SOURCE Michigan Education Savings Program
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