With your MESP account, you’re never locked in. You’ll always have access to several options for this money:

• Your funds can be used to pay for a variety of eligible education expenses, including at any accredited college, university, apprenticeships, community college or postgraduate program in the United States—and even some schools abroad.¹
• Your 529 can be used for student loan repayment up to $10,000 lifetime limit per individual.¹
• Up to $10,000 annually can be used toward K-12 tuition (per student).¹
• You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or yourself.
• If you just want the money back, you can withdraw the funds at any time. If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the “Additional Tax”). See the Program Description for more information and exceptions.
• Effective January 1, 2024, 529 funds may be rolled over to a Roth IRA in the name of the beneficiary of the 529 Plan.

State tax treatment of a rollover from a 529 plan into a Roth IRA is determined by the state where you file state income tax. There are conditions that must be met including the 529 Plan must have been in existence for at least 15 years.

You should talk to a qualified professional about how tax provisions affect your circumstances.

¹Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school, can be withdrawn free from federal taxes. For Michigan taxpayers, these withdrawals are subject to recapture of Michigan income tax deduction and state income tax on the earnings. Registered apprenticeship programs and student loan repayment can be withdrawn free from federal and Michigan income tax. You should talk to a qualified professional about how tax provisions affect your circumstances.

No. Your MESP funds can be used at any accredited university in the country—and even some abroad. This includes public and private colleges and universities, apprenticeships, community colleges, graduate schools and professional schools.¹ Up to $10,000 annually can be used toward K-12 tuition (per student).¹ In addition, your 529 can be used for student loan repayment up to $10,000 lifetime limit per individual.¹ Review a list of qualifying expenses and the state tax treatment of withdrawals for these expenses in the Program Description.

¹Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school, can be withdrawn free from federal taxes. For Michigan taxpayers, these withdrawals are subject to recapture of Michigan income tax deduction and state income tax on the earnings. Registered apprenticeship programs and student loan repayment can be withdrawn free from federal and Michigan income tax. You should talk to a qualified professional about how tax provisions affect your circumstances.

Qualified higher education expenses include tuition, certain room and board expenses, fees, books, supplies and equipment required for the enrollment and attendance of the beneficiary at an eligible educational institution. This includes most postsecondary institutions. When used primarily by the beneficiary enrolled at an eligible educational institution, computers and related technology such as internet access fees, software or printers are also considered qualified higher education expenses.

Qualified higher education expenses also include certain additional enrollment and attendance costs at eligible educational institutions for any beneficiary with special needs.

Qualified higher education expenses also include (a) tuition in connection with enrollment or attendance at a primary or secondary public, private or religious school (up to a maximum of $10,000 of distributions per taxable year per beneficiary from all Section 529 programs)¹; (b) expenses for fees, books, supplies and equipment required for the participation of a beneficiary in a certified apprenticeship program¹; and (c) amounts paid as principal or interest on any qualified education loan of either the beneficiary or a sibling of the beneficiary (up to a lifetime limit of $10,000 per individual).¹ Review the Program Description for additional information, including the state tax treatment of withdrawals for these expenses.

¹Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school, can be withdrawn free from federal taxes. For Michigan taxpayers, these withdrawals are subject to recapture of Michigan income tax deduction and state income tax on the earnings. Registered apprenticeship programs and student loan repayment can be withdrawn free from federal and Michigan income tax. You should talk to a qualified professional about how tax provisions affect your circumstances.