State asking whether college plans can cover K-12 tuition
LANSING, Mich. (AP) — Gov. Rick Snyder is checking on the legality of allowing Michigan's 529 college savings plans to be used to cover private K-12 tuition costs.
The federal tax cut enacted last year includes the expansion of eligible expenses for such savings plans, so private K-12 tuition is included. But the Michigan Constitution prohibits direct or indirect public aid to any non-public school.
Snyder and state Treasurer Nick Khouri sent a letter Friday to state Attorney General Bill Schuette (SHOO'-tee) asking for a legal opinion.
Contributions to the Michigan Education Savings Program are deductible for state income tax purposes, and investment earnings and withdrawals are not taxed.