Montana 529 College Savings Plan


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Montana Family Education Savings Program (MFESP)

Earnings from funds deposited in a Montana 529 program will grow federal and state tax deferred. As long as the funds are used for approved educational expenses, the disbursements will also be federal and Montana tax free. Montana taxpayers may deduct up to $3,000 per year ($6,000 if filing jointly). Additionally, taxpayers from Pennsylvania, Maine and Kansas may also make a deduction from their state taxable income for payments made to a Montana 529 plan. Check your own state 529 rules and benefits before making a deposit. Montana provides two 529 plans as described below.

MFESP Bank Plan

This savings portfolio will be invested in an FDIC-insured savings account and certificates of deposit from College Savings Bank. The MFESP Bank Plan will use CD's of varying maturities to ensure maximization of earnings. Minimum deposit is $250, $500 or $1,000 depending on the option you choose, unless you want to sign up for a direct deposit. If you do choose to sign up with a lesser amount, the funds are held in a savings account until the minimum deposit is reached, then the money is transferred to the MFESP account.

Montana 529 Investment Plan

Investors may also choose the Investment Plan which features Vanguard mutual funds. The choices range from conservative to 100% stocks.
  • Vanguard LifeStrategy® Growth Portfolio - Conservative
  • Vanguard LifeStrategy® Moderate Growth Portfolio - moderate, including 45-70% stocks
  • Vanguard LifeStrategy® Growth Portfolio - moderate, including 65-90% stocks
  • Vanguard Total Stock Market Index Portfolio - 100% domestic stocks
  • Vanguard Total International Stock Market Index Portfolio - 1005 international stocks

You should also check with a financial advisor and tax advisor to see if a 529 investment is right for you.

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