Tax Benefits

Tax-Deferred Earnings

Tax-Deferred Earnings:

Your account earnings grow deferred from both federal and state taxes.

federal-and-state-icon

Federal and State Tax-Free Qualified Withdrawals:

When your child is ready for college, you can withdraw the money from your Achieve Montana account free from federal and Montana state income taxes if the money is used to pay for qualified higher education expenses.

Gift Tax Benefits

Gift Tax Benefits:

Your contributions also qualify for the federal $15,000 ($30,000 if married, making a proper election) annual gift exclusion.

Special Tax Benefits for Montana Taxpayers

Special Tax Benefits for Montana Taxpayers:

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, or an account owned by your child or stepchild if your child or stepchild is a Montana resident.

Estate Planning Benefits

Estate Planning Benefits:

Reduce your personal taxable estate by making five years’ worth of gifts to a beneficiary (up to $75,000; $150,000 if married, making a proper election) in one lump sum.