Michigan 1st Time Homebuyers’ Savings Account from Kitchen Table Finance

Kitchen Table Finance

David Shotwell CFP(r) and Nick Nauta CFP(r)

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Michigan 1st Time Homebuyers’ Savings Account

21 minutes Posted Feb 20, 2023 at 3:28 pm.

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Dave and Nick are joined by Ashley Sajor, Associate Financial Planner here at Shotwell Rutter Baer. Ashley started her career at SRB as an intern and after graduating from MSU became a full-time employee.

Check out Ashley’s previous visit to our show in the episode titled, Helping Your College Student Budget.

Today, we are exploring the concept of a first-time home buyer savings account for the state of Michigan. Which actually was passed into law around June of 2022, so we’re a little over six months into this new home buyer savings account.

Ashley and Nick have been working on researching it so they can provide the details in this episode. Their information includes some strategies you might consider.

What is a First Time Homebuyer’s Savings Account?

The first-time homebuyer savings account is a tax incentive savings account dedicated towards the purchase of a first home in Michigan. A first-time home buyer is anybody who has not owned a principal residence in the past three years. So you could rent but as long as you haven’t owned your own home in the past three years you can count towards this savings account can. It can be in your own name or in the name of your beneficiary. As long as the beneficiary is the person who qualifies for the credits and has not owned their residence in
the past three years. The savings account must be at an institution that’s eligible to do business in Michigan.

You can claim an annual tax deduction on your yearly contributions and tax-free growth on any gains in the account. As long as it is intended for, or used purchase of the first -time home.

Twelve other states also have this but Michigan is one of the best so far for tax benefits. It’s similar to the 34 Michigan education savings plans for this account.

Listen to the entire episode as they talk about strategies and go over some of the elements of how these first-time homebuyers’ savings
accounts work.

If you are interested in setting up one of these accounts or would like more information, please contact us at 517-321-4832 or email us at [email protected].

About Shotwell Rutter Baer

Shotwell Rutter Baer is proud to be an independent, fee-only registered investment advisory firm. This means that we are only compensated by our clients for our knowledge and guidance — not from commissions by selling financial products. Our only motivation is to help you achieve financial freedom and peace of mind. By structuring our business this way we believe that many of the conflicts of interest that plague the financial services industry are eliminated. We work for our clients, period.

Click here to learn about the Strategic Reliable Blueprint, our financial plan process for your future.

Call us at 517-321-4832 for financial and retirement investing advice.

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