Montana 529 Plan Tax Benefits
Montana Residents, you 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:
Non-Montana Residents, click here for out of state benefits
- Earnings grow tax-free until you’re ready to withdraw the funds. When the funds are used to pay for qualified college expenses, principal and earnings are distributed tax-free.
- Anyone can participate and there are no income limitations restricting the availability of tax benefits like you'll find on Individual Retirement Accounts.
- Participants also benefit through tax-free gifting. Account owners can make annual gifts of up to $12,000 single and $24,000 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 $60,000 single and $120,000 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 $335,000 - the current maximum contribution limit.
- Assets in an MFESP 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 into the MFESP. Your income must fall below $94,700 joint or $63,100 single for 2006 and other restrictions apply. Qualified taxpayers with incomes of up to $124,700 joint and $78,100 single can still receive partial tax benefits. For details call 800-888-2723.
- You control the assets. If the child does not go to college you can change the beneficiary penalty free.
In addition to tax benefits, College Savings Bank's 529 Plan Products are available without fees, feature FDIC insurance and principal protection.
Enroll online today using your credit card or debit card. Or you can download and mail in an enrollment form with a check or money order.