The most valuable thing we can provide you with at Kroon and Mitchell is education. The second is cash in your pocket. With our latest contest, we’ll be doing both! Submit your contact information and you will be entered to win a $500 contribution to a Michigan Education Savings Plan (MESP) for the recipient of your choice. If the recipient you would like to give the $500 to does not have an MESP fund set up, K&M will assist in setting one up at no charge and in this set up in no way ties the fund or the recipient to K&M for any additional services.
First, what is an MESP?
Many states provide a 529 Savings Account designed to help plan for paying for education. In Michigan, this is commonly called an MESP. These plans provide tax free growth within the account, and tax free withdrawal.
Do I have to use MESP funds at a Michigan institution?
No! This money can be used at essentially any institution with a student aid program. Additionally, the money can be used for more than tuition. Some room and board, technology, equipment, and other costs are generally acceptable. Sorry, pizza and beer don’t qualify.
How is the cash invested?
The MESP website provides a variety of options based on your risk tolerance. For the average investor, they even offer enrollment date options that automatically adjust the holdings as the student gets closer to needing the money.
Is it possible to save too much in an MESP?
If you wind up with leftover money in an MESP, you can designate a new beneficiary as long as they are eligiblle. If that’s not an option, non-qualified use of the funds is subject a 10% penalty on top of any federal and state taxes.
Should I be considering a 529 Plan for estate tax planning purposes?
You may have heard of the ability to “superfund” a 529 plan, giving up to five years’ worth of gifts at a time as a qualified annual gift tax exclusion. For couples, this could mean moving $150,000 out of your estate and into the educational future of someone you care about. Talk to a professional about if and how to utilize this strategy.
As always, we are happy to assist you in any wealth strategy or execution. MESPs are set up directly through the state of Michigan. Entering this contest or creating an MESP in no way commits you to work with or ties you to Kroon and Mitchell. No purchase necessary, one entry per person.
Enter to Win
$500 contribution to the 529 education fund of your choice (we can help set one up for the recipient of choice if needed and this in no way connects you to Kroon and Mitchell).
We will in no way share your email or contact information with anyone.
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