SB 1247 Summary

• Establishes the Family Savings Account Program within the Michigan Department of Treasury to allow individuals to create savings accounts for eligible family expenses starting in tax years after December 31, 2019.

• Defines eligible expenses as reasonable living costs including child care, family planning, fertility services, adoption, home renovations for accessibility, preventative health care, and mental health services, but explicitly excludes nonpublic school tuition for grades K-12.

• Allows only cash and marketable securities to be contributed; permits account administrators (financial institutions or certified public accountants) to deduct reasonable service fees and requires annual reporting to the department.

• Imposes a 10% penalty on withdrawals for non-eligible purposes, with exceptions for bankruptcy filings; distributions transfer to the account holder's estate upon death.

• Takes effect only if SB 1248 is enacted into law (conditional tie-bar requirement).