1 Contributions up to $3,000 ($6,000 if married, filing jointly) to an MFESP account owned by the taxpayer, the taxpayer's spouse, or the taxpayer's child or stepchild (if the child or stepchild is a Montana resident at the time of the contribution) are deductible in computing Montana adjusted gross income for the tax year in which they are made. Contributions may be subject to recapture in certain circumstances, such as a non-qualified withdrawal or a withdrawal or distribution from an account that was opened within three years prior to the date of the withdrawal or distribution (Recaptured Withdrawal). If the account owner is no longer a Montana taxpayer at the time of a Recaptured Withdrawal, the Program Manager or its service provider may withhold the potential recapture tax from the Recaptured Withdrawal.
2 The Federal Deposit Insurance Corporation (FDIC) generally insures, with respect to each FDIC-insured institution, deposit accounts (including principal and accrued interest) that are held in the same right and capacity up to the maximum amount set by federal law, currently $250,000. Contributions to the Bank Plan (including principal and any accrued interest) are insured by the FDIC on a pass-through basis to each account owner up to the maximum amount. Under applicable FDIC regulations, accounts that have the same owner and the same designated beneficiary will be deemed to be held in the same right and capacity and will be combined for purposes of the $250,000 limitation.
For more information about the MFESP, click on either the MFESP Bank Plan or the MFESP Investment Plan link above or call 1-800-888-2723 to obtain an Enrollment kit. Each Enrollment Kit includes a Disclosure Statement that discusses investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing. If you are not a Montana taxpayer, consider before investing whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
The MFESP is sponsored by the State of Montana and administered by the Montana Board of Regents of Higher Education (Board), as sole trustee of the Montana Family Education Savings Trust (Trust). The Board selected College Savings Bank to serve as Program Manager for the MFESP. The MFESP consists of two Plans, the MFESP Bank Plan (Bank Plan) and the MFESP Investment Plan (Investment Plan). When you invest in these Plans, you are purchasing portfolio units issued by the Trust.
College Savings Bank serves as the MFESP Program Manager. Upromise Investments, Inc. (UII) provides distribution services and Upromise Investment Advisors, LLC (UIA) provides recordkeeping and administrative support services for the Investment Plan. UII and UIA are affiliates. The Vanguard Group, Inc. serves as the investment manager for the underlying mutual funds comprising the Investment Plan's portfolios. The portfolios, although they invest in mutual funds, are not mutual funds. Investment returns are not guaranteed, and you could lose money by investing in the Investment Plan. For additional information, please refer to the Investment Plan Disclosure Statement.
College Savings Bank, as Program Manager, supports all aspects of the day-to-day operations of the Bank Plan, including marketing, recordkeeping, and administrative support. The Bank Plan offers four portfolios that invest in either a College Savings Bank-issued CD or a savings account. CDs may be subject to early withdrawal penalties. Generally, contributions to the Bank Plan, including principal and accrued interest, are insured by the FDIC on a pass-through basis to each account owner up to the maximum amount set by federal law, currently $250,000. Under applicable FDIC regulations, accounts that have the same owner and the same designated beneficiary will be deemed to be held in the same right and capacity and, as such, will be combined for purposes of the $250,000 limitation. Please refer to the MFESP Investment Plan Disclosure Statement and the College Savings Bank Product Disclosure Statement.
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