How do I report my 529 plan information for Montana?

If you contributed to the 529 plan, you will be able to claim a subtraction from income. If you withdrew money from your 529 plan, you may have to add the withdrawal back to your income if it was not used for educational purposes. 

What is the 529 plan?  

 Achieve Montana offers special advantages including: tax-deferred growth, generous contribution limits, and professional investment management.

What are the qualifications?

You can use the assets in your account toward the costs of nearly any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education, which includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an “Eligible Educational Institution.” You can also visit DAPIP for a database of accredited schools.

What are the limits? 

Contributions you make to Achieve Montana may be eligible as a yearly deduction of up to $3,000 per taxpayer per year ($6,000 for those married, filing jointly) from adjusted gross income in computing Montana state income tax. To be eligible, the contribution must be made to your account, an account owned by your spouse, on an account owned by your child or stepchild if your child or stepchild is a Montana resident.

What about carryovers?

The state will accept a rollover of funds from an account with another 529 Plan into Achieve Montana.

What if I don’t use it for education expenses?

 If the withdrawal is not used for educational expenses for the designated beneficiary, federal and possibly state taxes and a 10% federal penalty will apply to the nonqualified withdrawal.

Program Entry

1. State Section
2. Subtractions from income
3. Family education savings account

Montana allows you to apply your state refund to your 529 savings plan

1. State Section
2. Edit
3. Payments
4. Montana Schedule 529 (Apply overpayment to either a 529 or 529A Plan)
5. Add 529 or 529A

Additional Information 

• Montana College Savings