Congratulations to Eileen Vaughn – her name was chosen for the Kindle HD in the raffle for attendees at the Cigna meetings this week!!
Michigan Education Savings Program (MESP)
Did you know that you can save money for higher education assistance for someone you care about by using payroll deduction? The State of Michigan has made available the TIAA-CREF-managed Michigan Education Savings Program (MESP) to employers such as NMC. Recent information on this program has been received to clarify how this program offers a benefit to you. Unfortunately we have been calling this a pre-tax program, and apologize for this miscommunication. The following information was sent to us to more clearly describe how MESP tax savings are realized:
“Although MI state tax payers are eligible for a MI state tax deduction for contributions made up to $5000 for single filers and $10,000 for joint filers, contributions made to the MESP even from a paycheck are still made on an after-tax basis. Any tax savings comes when the MESP account owner goes to file their MI state taxes.
Payroll deduction to the MESP account is offered as a method of contribution, and is handled on an after-tax basis similar to direct deposit into an employee’s checking or savings account. The Program also accepts funds via physical check or electronically from a checking or savings account. Tax treatment of contributions is the same no matter how an account owner elects to contribute.
The employee would be responsible for indicating the amount of their contributions when filing their MI state taxes as well as reporting any redemptions taken from their account also when they file their taxes.
For further assistance please contact our service center representatives at 1-877-861-6377 and select option 3. Our service department’s hours are from 8am to 8pm ET, Monday through Friday, excluding holidays.”
More details on the program can be found by visiting their website at www.misaves.com If you decide to use the MESP as an educational savings program, contact HR at 231-995-1362 on starting your payroll deductions.