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Brighton youngster is 100,000th MESP Account

December 22, 2003 - Michigan Education Savings Program officials have recognized Sean Sosnowski, son of Scott and Laura Sosnowski of Brighton, as the beneficiary of the 100,000 Michigan Education Savings Program account opened since the program started in November, 2000.

The new MESP "Piggybank Mobile" stopped by the Sosnowski home on Saturday morning. The pink car, complete with a graduation cap, snout and twisty tail, was carrying boxes of t-shirts from colleges across Michigan, signifying that Sean can use proceeds from his MESP account at colleges around the state, nation and even overseas.

Sean, 5, said he hadn't selected a college yet. But his father, Scott Sosnowski, said he picked MESP as the best way to save for college after visiting his financial advisor and learning about the state income tax deduction on contributions, and tax-free growth on investments.

"We had been using a variety of savings vehicles for college, but after hearing about the advantages of MESP, we decided to move money into it," said Scott Sosnowski, who added that the family also opened an account for his daughter, Madeline. Sosnowski said he opened the two accounts on-line, and signed up for regular amounts to be withdrawn from his bank accounts to make saving easier.

"MESP is one of the fastest growing college savings programs in the country," said First Gentleman Daniel Granholm Mulhern. "Holidays are a particularly good time to open or add to an account for a youngster. It's a gift that can make a difference for years to come."

MESP is the state's 529 college savings programs. Contributions made before Dec. 31 can be deducted from this year's Michigan income taxes (subject to a limit of up to $10,000 for joint filers), and contributions grow free of state and federal taxes is used for higher education. MESP withdrawals can be used for room and board, tuition, books, and a number of other college-related expenses at qualified colleges around the nation, public and private.

Bruce Sheinhaus, program director for Michigan Education Savings Program, said that more than 23,000 MESP accounts have been opened in 2003, and assets in the program have increased from $236 million at the end of 2002 to more than $525 million at present.

"Families who want to receive a state income tax deduction this year need to make a contribution by Dec. 31," said Sheinhaus. "It's easy and fast to use our web site to make additional contributions or open an account on-line."

Michigan also sponsors the Michigan Education Trust, the state's 529 pre-paid tuition program. Families can purchase contracts that will guarantee them a semester, year or multiple years of tuition at a Michigan public university.

For more information about MESP, visit www.misaves.com, or call 1-877-861-MESP.

If you are not a Michigan resident or if you have taxable income in another state, consider whether that other state offers a 529 plan with favorable state income tax or other benefits not available if you invest in MESP. The MESP Disclosure Booklet and Participation Agreements (PDF, 476KB) should be read carefully before opening an account. The State of Michigan, its agencies, TIAA-CREF Tuition Financing, Inc. (TFI), Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return. Account value will fluctuate based upon a number of factors, including general financial market conditions. Investments are made through Teachers Personal Investors Services, Inc., as distributor. The law allowing federal tax-free qualified withdrawals is set to expire on December 31, 2010.

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	Michigan Education Trust

The tax information contained on the Michigan Education Savings Program (MESP) Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

Consider the investment objectives, risks, charges and expenses before investing in the Michigan Education Savings Program. Please call toll-free 1(877) 861-6377 for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

TIAA-CREF Individual & Institutional Services, LLC, distributes MESP. The State of Michigan, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company's guarantee to MESP under the funding agreement for the Principal Plus Interest Option. Account value will fluctuate based upon a number of factors, including general market conditions.

Investment management, program administration and distribution of The Michigan Education Trust (MET) program is provided solely by the Michigan Department of Treasury. MET is not managed by TIAA-CREF Tuition Financing, Inc. nor is it distributed by TIAA-CREF Individual & Institutional Services, LLC.

The MESP Web site contains links to other Web sites. Neither MESP nor TIAA-CREF Tuition Financing, Inc. and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.