Montana 529 Plan Tax Benefits

Sound investments and a tax deduction - Montana you have it all!

Montana Residents are entitled to a $3,000 deduction to gross income per taxpayer, or $6,000 for those married, filing jointly based on contributions to the Montana Family Education Savings Program*.

Additional tax benefits include:

  • Earnings grow tax-free.

  • Distributions to pay qualified education expenses are tax-free.

  • Anyone can participate and there are no income limitations.

  • Participants also benefit through tax-free gifting. Account owners can make annual gifts of up to $13,000 single and $26,000 joint to a designated beneficiary for all accounts without incurring federal gift tax. For contributions over the limit, you may treat the money (up to $65,000 single and $130,000 joint) as having been made ratably over a five-year period.

  • At any time you may prepay as much college and graduate school as you'd like up to $340,000 - the current maximum contribution limit.

  • Assets in a 529 account are not treated as part of the federal taxable estate of the account owner who is not a designated beneficiary.

  • U.S. Savings Bond owners generally may redeem bonds purchased after 1989 tax-free and deposit the proceeds in a 529 plan. IRS restrictions apply. Please see the IRS Tax Benefits for Education for current income limitations or call 800-888-2723 for more information.

  • If the child does not go to college you can change the beneficiary penalty free.


*Subject to recapture if the funds are withdrawn from the program within three years.

Page Links:
- Enroll Online - Collegesure CD - InvestorSure CD - Fixed Rate CDs

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