MI HB4202

Expands account ownership eligibility to include state and local government agencies, tax-exempt organizations, estates, trusts, and corporations in addition to individuals for the Michigan education savings program.

Allows state and local government agencies, tax-exempt 501(c)(3) organizations, and corporations operating scholarship programs to defer naming a designated beneficiary, unlike individual account owners who must name one immediately.

Permits any individual or entity to make contributions to an account, with contributions limited to cash, checks, credit cards, or treasurer-approved methods but excludes property.

Establishes four distribution methods: direct payment to eligible institutions, joint checks to beneficiary and institution, checks to beneficiary or account holder, or electronic transfers to accounts specified by the beneficiary.

Imposes a 10% penalty withholding on non-qualified distributions made before January 1, 2002, and requires 10% withholding on accumulated earnings for non-qualified distributions after December 31, 2001 unless federal penalties already apply.