Michigan 529 plan

Michigan 529 Plan

Program match on contributions: Michigan residents with adjusted gross income of $80,000 or less and a beneficiary under seven years old may apply for a one-time matching grant of $1 for every $3 contributed, up to a maximum $200 grant; the 2008 application deadline is September 30, 2008.

State tax deduction or credit for contributions: Contributions to the Michigan Education Savings Plan of up to $5,000 per year for an individual taxpayer, and $10,000 per year for married taxpayers filing a joint return, are deductible in computing Michigan taxable income. Contributions must be reduced by qualified withdrawals during the year for purposes of determining the amount that may be deducted. Rollover contributions are not deductible, according to the Michigan Department of Treasury. Contribution deadline is December 31.

State tax recapture provisions: The principal portion of nonqualified withdrawals from this plan are included in Michigan taxable income to the extent of prior Michigan tax deductions. Rollovers apparently are not subject to recapture.

Age-based investment options: The Age-Based Option is offered in three different risk levels (Aggressive, Moderate, and Conservative), each containing six portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary’s age and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options: Select among three multi-fund options (the 100% Equity Option, the 100% Fixed Income Option, and the Balanced Option) and the Principal Plus Interest Option.

Single Funds
 * 100% Equity Index Option
 * TIAA-CREF S&P 500 Index Fund (57.8%)
 * TIAA-CREF Large Cap Value Index Fund (3.2%)
 * TIAA-CREF Mid Cap Growth Fund (6%)
 * TIAA-CREF Mid Cap Value Fund (6%)
 * TIAA-CREF Small Cap Fund (7%)
 * TIAA-CREF International Equity Fund (20%)


 * Balanced Option
 * TIAA-CREF S&P 500 Index Fund (32.44%)
 * TIAA-CREF Mid Cap Growth Fund (3.15%)
 * TIAA-CREF Mid Cap Value Fund (2.94%)
 * TIAA-CREF Small Cap Fund (3.47%)
 * TIAA-CREF International Equity Fund (12%)
 * TIAA-CREF Real Estate Securities Fund (6.00%)
 * TIAA-CREF Bond Fund (30%)
 * TIAA-CREF Inflation Linked Bond Fund (10%)


 * 100% Fixed Income Option
 * TIAA-CREF Bond Fund (75%)
 * TIAA-CREF Inflation Linked Bond Fund (25%)


 * TIAA Principal Plus Interest Option (100%)

Expenses: 0.45%; None for the Principal Plus Interest Option.


 * Plan site
 * Plan document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans