Montana

Program Name: Montana ABLE (click to open an account) Phone: 1 (888) 609-3461
Status: Open for Enrollment
State Program Manager: Ascensus College Savings Recordkeeping Services, LLC
State Account Limit: $396,000
Accepts Out Of State Residents: Yes
Annual Contribution Limit: $18,000 (This limit is a Federal limit that is required of all states and does not include additional ABLE to Work contributions.)
ABLE To Work Act Contribution: An Account Owner who is employed and who is not contributing to a defined contribution plan, an annuity contract or an eligible deferred compensation plan may contribute additional money to his or her ABLE Account. The additional amount that may be contributed is an amount equal to the Account Owner’s employment income or equal to the poverty line for a one-person household for the prior calendar year, whichever amount is the less. This is up to $14,580 for residents of the continental U.S.; $18,210 for residents of Alaska and $16,770 for residents of Hawaii.
Program Banking Institution: Fifth Third Bank
Number Investment Options: 7
Program Investment Institution(s): The Investment Options include 6 Target Risk Options with Underlying Investments managed by BlackRock, Schwab, Vanguard, Capital Group-American Funds, and Sallie Mae Bank. Fifth Third Bank provides the 7th Investment Option, a Checking Account Option, that invests 100% of its assets in an FDIC-insured checking account.
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes.    Contributions made by check, recurring contribution, or EFT to the Checking Account Option will be available for withdrawal after six business days. Contributions to the Target Risk Investment Options made by check, recurring contribution, or EFT will be available for withdrawal after 5 business days. There will be a hold of 10 business days on withdrawal requests when there is a change of address.
Medicaid Estate Recovery Status: Please note that following the death of the account owner, the state Medicaid plan may file a claim against the Account Owner or the Account itself for medical assistance paid under the state's Medicaid plan after the establishment of the account.
State Income Tax Deduction: Yes. Montana taxpayers can deduct $3,000 per tax year for contributions to their own account, spouse, or their child. This deduction only applies to contributions made to MT ABLE accounts. Consult with a Tax Preparer to discuss your tax matters.
FDIC Insured: Yes. The Fifth Third Bank, NA Checking Account Option is FDIC insured up to $250,000, subject to certain restrictions.
ABLE Legislation:

SB 399 Legislative Summary

HB288 expanded the family members eligible for a tax deduction for contributions to ABLE accounts, and revised requirements for opening an account.

SB207 provides Montana taxpayers the opportunity to direct deposit their State income tax refund into an ABLE account.

 

 

Account Disclosure Document(s):

Please see the Plan Disclosure Documents


Program at a Glance

  • Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
    Yes. $25.
  • Is there a required minimum contribution to your account? If so, what is the amount?
    Yes. $25.
  • Is there an annual set fee to maintain the account? If so, how much?
    Yes. The quarterly account maintenance fee of $15.00 for paper statement delivery ($60 annually) is reduced to $11.25 quarterly ($45 annually) for accounts that receive electronic statements.
  • Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
    No.
  • Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
    Yes. The Investment Options include 6 Target Risk Options with Underlying Investments managed by BlackRock, Schwab, Vanguard, Capital Group-American Funds, and Sallie Mae Bank. Fifth Third Bank provides the 7th Investment Option, a Checking Account Option, that invests 100% of its assets in an FDIC-insured checking account.
  • Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
    Yes. $0.
  • Fee Range
    • Annual Maintenance Fee:
      The Annual Account Maintenance Fee is $58.00, reduced to $33.00 for E-delivery of statements and confirmations for in-state and out-of-state Account Owners.
    • Check Fee:
      Checkbooks containing 40 checks may be purchased for $6.00 per checkbook. Once the checking account balance reaches at least $25.00, payment for checkbooks may be made from funds in the account.
    • Debit Card Fee:
      A Fifth Third Bank checking account option is available with a real-time debit card and no overdraft fees. The $2.00 monthly fee will be waived for accounts with an average daily balance of greater than $250, or if enrolled in electronic statement delivery.
    • Investment Option Fee Range:

      Please See Plan Disclosure Documents

    • Statement Fee:
      The Annual Account Maintenance Fee is $58.00, reduced to $33.00 for E-delivery of statements and confirmations for in-state and out-of-state Account Owners.
    • ABLE Account Transfer Fee:
      $0
    • Withdrawal Transaction Fee:
      $0
  • Are there other characteristics unique to your program?

    Montana is a member of the National ABLE Alliance, a bi-partisan consortium of states and the District of Columbia. Montana ABLE Account Owners benefit from powerful oversight, high-quality plan features and low-cost, strong-performing investments.  Account Owners have access to an exclusive, fully integrated Fifth Third, FDIC-insured Checking Account Option, which is available with a real-time debit card and check-writing capability.  The Montana ABLE plan is available to both in-state and out-of-state residents, and Montana taxpayers who contribute to Montana ABLE Accounts can take a deduction from state income taxes.  Anyone can contribute to an Montana ABLE Account, and the easy-to-use Ugift feature makes gift contributions easy.

    Where can I find the ABLE Plan’s investment performance information? Please See ABLE Plan Disclosure Documents

Montana ABLE (click to open an account) Phone: 1 (888) 609-3461