Tax Time is a Good Time to Talk about Saving for Higher Education with MET!
The 2022 tax filing season is in full swing, and while it may not be the favorite time of year for most Michiganders, the refund that a majority of taxpayers will receive makes the tedious process of preparing state and federal tax returns well worth the effort.
According to IRS data, federal tax refunds averaged $2,873 in 2021. That raises the question of what to do with the money? We have an answer to that question.
Michigan Education Trust (MET) has a suggestion for parents, grandparents and guardians looking for a smart way to put that money to work – invest it in a MET prepaid education savings contract for a child or grandchild.
Tax time is the perfect time to start saving for college. MET helps make saving for college easier. Avoid rising tuition costs by purchasing college credits at today’s price. Yes, you read that correctly. A MET account helps families start saving for their child’s future education expenses – TODAY.
What is MET?
MET is Michigan’s 529 prepaid tuition savings program which allows you to pay for future education at today’s price. The Michigan Education Trust program has been a way to secure higher education tuition since 1986.
MET is portable – it goes where you go. Students can direct MET funds to Michigan private colleges, out-of-state schools or even trade schools.
MET can be transferred – after the beneficiary of a MET turns 18 years old, all or a portion of the credits may be transferred to an immediate family member – family members that may include a spouse, mother, father, brother, sister, legally adopted brother or sister, child, legally adopted child, niece, nephew or cousin of the first degree – more information about transferability HERE.
MET is flexible- Students have 15 academic years from their expected high school graduation year to use tuition benefits. MET can be purchased in one semester increments up to eight semesters or by the credit hour.
And 96% of all high school graduates with MET accounts have gone on to attend college!
There are ongoing tax perks to starting a MET account too. Contributions to MET plans are tax deductible. And later when it is time for your child/children to go to college, MET earnings are tax exempt as long as they are used for higher education tuition and mandatory fees.
MET accounts have pay-as-you-go, monthly purchase and lump-sum payments are available. Gifting MET declarations are also available.
Interested in learning more about MET?
Check out Michigan Education Trust events HERE – there are upcoming informative webinars about the MET program April 5 and April 21, 2022.
Talk to your accountant or financial advisor about the advantages of Michigan Education Trust and Enroll Online today.
YouTube LInk about MET Michigan Education Trust (MET) Presentation