What are the income tax benefits associated with the MI 529 Advisor Plan?
• Federal income tax-free. Any earnings on the money you invest in your Account will not be subject to federal income taxes before they are distributed. Any amounts in the Account that are withdrawn to pay for the Designated Beneficiary’s qualified higher education expenses will not be subject to federal income tax. Qualified higher education expenses include tuition, fees, room, board, books, equipment and other supplies. • In calendar years 2009 and 2010 only, qualified higher education expenses also include expenses for the purchase of certain computer technology or equipment (as defined in Section 170(e)(6)(F)(i) of the Code) or Internet access and related services, if such technology, equipment or services are to be used primarily by the Designated Beneficiary while enrolled at an eligible educational institution. However, expenses for computer technology and equipment do not include expenses for computer software designed for sports, games, or hobbies unless the software is predo
