Higher education savings vehicles done with tax deferred investments use proceeds to pay for education.
The growth is tax free. Each state has one and rules and taxes differ state to state.
You may have wondered how Michigan’s 529 plan rates: It turns out it’s among the best in the nation.
Morning Star is an investment analysis firm that rates Michigan’s 529 plan a gold star plan, one of only three it looked at. The gold star rating is the plan’s second year in a row. The other two gold stars went to Illinois and Utah.
Morning Star says the Michigan 529 is well researched and run, and gets strong state oversight. It has minimal fees and Morning Star concludes “families invested in these 529 plans should be well positioned for the future.”
The Michigan Education Savings Program uses TIAA-CREF Tuition Financing Inc. to manage the now $7 billion invested in the plan.
More: Money Monday section