529 PLANS

Montana ABLE

Montana

The Montana ABLE Program is offered through the National ABLE Alliance. The program is created under the Montana Achieving a Better Life Experience Act to authorize the establishment of savings accounts empowering individuals with a disability and their families to save private funds to support the individual with a disability and to provide guidelines for the maintenance of such accounts.

General

Program type:

ABLE Savings plan

How to enroll:

Enroll directly with the program

Initial year of operation:

2017

State agency(ies):

Montana Department of Public Health and Human Services

Program manager:

Ascensus

Manager contract term:

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Investment Manager

BlackRock, Fifth Third Bank, Sallie Mae Bank, Schwab and Vanguard are the managers of their respective Underlying Investments.

Eligibility

State residency requirements:

No

Who can be a participant/owner in the program?

An account owner must be an eligible individual under Section 529A as well as a U.S. Citizen or resident alien with a SSI/TIN number and valid permanent U.S. street address.

Program restrictions:

To be eligible for an ABLE savings plan, an individual must have been diagnosed with a disability before age 26, and be eligible to receive benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI). Individuals who are not receiving SSI and/or SSDI may still be eligible if they meet the age requirement and have been diagnosed by a licensed physician and received a letter of certification.

Contributions

Maximum contributions:

Accepts contributions until all account balances in Montana's 529 plans for the same beneficiary reach $396,000

Minimum contributions:

The initial and additional contribution minimum is $25

Investment Options

Target-Risk Options:

Six target-risk options, in which the asset mix (or allocation) seeks to meet a specific investment goal and risk tolerance. The target-risk options include: Aggressive, Moderately Aggressive, Growth, Moderate, Moderately Conservative, and Conservative.

Bank Money Market Investment / Checking Option:

A checking option with Fifth Third Bank, which invests 100% of its assets in an FDIC-insured checking account.

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$15 quarterly, reduced by $3.75 if the owner elects to receive electronic statements and confirmation. $2 monthly service charge for investments in the Checking Option, waived for accounts with an average daily balance of more than $250

Program management fees:

0.32%; none for the Checking Option

Expenses of the underlying investments:

Ranges from 0.02% to 0.05%, depending on the investment option chosen; none for the Checking Option

Total asset-based expense ratio:

0.34% - 0.37%, depending on the investment option chosen; none for the Checking Option

Fees or restrictions on the number of disbursements

None, None, but a $25 fee applies to all outgoing wires and priority delivery service

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

Any earnings on contributions are not subject to Montana state income tax. Account assets grow free of current Montana income tax and are tax-free if withdrawn for qualified disability expenses.

Medicaid eligibility

The Centers for Medicare & Medicaid Services have not yet provided detailed guidance on how funds in qualified ABLE accounts will be treated for purposes of determining Medicaid eligibility.

Medicaid recapture provisions

Under Section 529A, following the death of the account owner, any state may file a claim against the account owner or the account itself for the amount of the total medical assistance paid for the account owner under the state's Medicaid plan after the establishment of the account (or any ABLE account from which amounts were rolled or transferred to the current account). The amount paid in satisfaction of such a claim is not a taxable withdrawal from the account. Further, the amount is to be paid only after the payment of all outstanding payments due for the qualified disability expenses of the account owner and is to be reduced by the amount of all premiums paid by or on behalf of the account owner to a Medicaid Buy-In program under that state's Medicaid plan.

Is there a debit card/ purchasing card available, and if so, at what cost?

Investors in the Checking Option may use a debit card to access funds.

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Withdrawals will be sent by check or ACH to the account owner at the address on the account or a third party designated by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership provided the appropriate form and any additional requested documentation is submitted to the Plan.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

Click here to visit

Telephone:

888-609-3461

Email:

mt.clientservice@savewithable.com

State News

 

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