LANSING, Mich. (AP) – More money could be set aside in Michigan’s tax-free college savings accounts under legislation going to Gov. Rick Snyder.
The current maximum account balance for education accounts naming any individual in the Michigan Education Savings Program is $235,000. The limit would rise to $500,000 under the bill approved unanimously Wednesday by the Senate.
The plans, which offer tax advantages, are known as 529 accounts.
The legislation is part of a package to let residents with disabilities open savings accounts to pay for long-term needs. A new federal law lets states establish Achieving a Better Life Experience, or ABLE, accounts.
The law requires the maximum allowed balance in an ABLE account to be the same as a state’s college savings plan limit.