Montana 529 Plan
Achieve Montana
Morningstar NeutralQuick Facts
- Expense Ratio
- 0.43%
- Fee Range
- 0.63% - 1.43% annual fees
- Tax Benefit Type
- Tax Deduction
- Deduction Limit (Single / Married)
- $3,000 / $6,000
- State Marginal Tax Rate
- 5.75%
- Carryforward
- None
- Income Limits
- No
- Any-State Deduction
- Yes
Should You Use Montana's 529 Plan?
Montana allows you to deduct contributions to any state's 529 plan, not just the in-state plan. This means you can choose the lowest-cost plan nationally and still claim the state tax deduction up to $3,000 (single) / $6,000 (married). Consider pairing a low-cost plan like Utah my529 with Montana's tax benefit.
Montana vs. Utah my529
Utah my529 is a commonly recommended low-cost reference plan. Here is how Achieve Montana compares.
| Achieve Montana | Utah my529 | |
|---|---|---|
| Expense Ratio | 0.43% | 0.13% |
| Morningstar Rating | neutral | gold |
| Tax Benefit | State tax deduction up to $3,000 (single) / $6,000 (married filing jointly) | 5% tax credit on contributions up to $2,290 |
| Fee Range | 0.63% - 1.43% annual fees | 0.17% - 0.64% annual fees |
| Investments | Age-based and individual portfolios | Vanguard age-based and individual funds |
How to Open Achieve Montana
You can open an account directly through the plan's website. You will need your Social Security number, the beneficiary's Social Security number, and your bank account information for funding contributions.
Frequently Asked Questions
What is Montana's 529 plan?
Montana's 529 plan is called Achieve Montana. It is a tax-advantaged college savings account that allows you to invest money for qualified education expenses. Earnings grow tax-free at the federal level, and withdrawals for qualified expenses are not taxed.
How much can I deduct on my Montana taxes for 529 contributions?
Montana allows a state income tax deduction of up to $3,000 per year for single filers and $6,000 for married couples filing jointly. With a marginal state tax rate of 5.75%, that could save you up to $173 per year.
Is Montana's 529 plan worth it?
It depends on your situation. Achieve Montana has an expense ratio of 0.43% and provides a state tax deduction for contributions. Since Montana allows deductions for contributions to any state's plan, you can choose a lower-cost plan and still claim the tax benefit.
Can I use an out-of-state 529 plan in Montana?
Yes. You can open a 529 plan in any state, regardless of where you live. The funds can be used for qualified education expenses at any accredited institution nationwide. Montana allows you to deduct contributions to any state's 529 plan, so you can use an out-of-state plan without losing the tax benefit.
What is the expense ratio for Montana's 529 plan?
The Achieve Montana has an expense ratio of approximately 0.43% for the age-based portfolio option. The full fee range across all investment options is 0.63% - 1.43% annual fees. For comparison, Utah my529 charges approximately 0.13%.