Michigan Education Savings Plan is a state 529 plan.
Contributions are deductible for Michigan income tax purposes up to $5,000 per year for a single income tax return filer and $10,000 per year for joint filers. Incoming rollovers from another 529 account, however, are not eligible for the tax deduction. https://www.misaves.com/plan/details.shtml This is why you can not enter more than $10k.
I assume that you said kids but just in case: Donations of more than $14k per individual can possibly trigger a gift tax. Each spouse (acting as an individual) can contribute up to $14,000 per recipient. If needed, you’ll need to report the gift to the IRS on Form 709 (no tax implications but it is part of potential lifetime gift giving). Five-year election: For 529 contributions, the IRS allows you to make five years’ worth of contributions at once — with the potential to avoid gift tax consequences. An individual could contribute $70,000 (or $140,000 for a married couple) to a beneficiary’s 529 in one lump sum, but you’ll need to use Form 709 to take the five-year election.
Earning grow tax free federally but there is no federal tax benefits for initial contributions. Only for the state.
Do note you can NOT contribute more than the planned cost of education or may some day have to recognize that back into state income... You don't actually have to use the money, you just can't put more in than the education costs....
I hope this was helpful?
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