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Montana Family Education Savings Program -- Investment Plan
Montana
Montana Family Education Savings Program -- Investment Plan
switched program managers in December 2010 from Pacific Life Funds to Upromise Investments, Inc. The program is now direct-sold only, and features Vanguard funds as underlying investments. Accounts can be linked to the Upromise rewards service.
5-Cap Rating
| Resident: |  |
|---|---|
| Non-Resident: | 
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Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)
| Performance | Costs | Features | Reliability | Resident Upgrade |
|---|---|---|---|---|
| 2.22 | 0.90 | 1.70 | 3.80 | 0.33 |
General
Did you know?
Residents are not limited to investing in their own state's plan. Another state may offer a plan that performs better and has lower fees. If there is no tax break offered for in-state investors ... shop around!
Also, the plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
Program type:
Savings
Telephone:
1-800-888-2723
Web site:
How to enroll:
Enroll directly with the program.
Initial year of operation:
2002, but substantially changed in December 2010
State agency(ies):
Montana Board of Regents of Higher Education
Program manager:
College Savings Bank with administrative services by Upromise Investments, Inc., and with The Vanguard Group as investment manager
Program distributor:
Upromise Investments, Inc.
Manager contract term:
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Eligibility
State residency requirements:
None
Who can be a participant/owner in the program?
U.S. citizens and resident aliens of legal age, UGMA/UTMA custodians, and legal entities. Joint ownership by spouses is permitted.
Significant time or age restrictions imposed by the program:
None
Contributions
Maximum contributions:
Accepts contributions until all account balances in Montana's 529 plans for the same beneficiary reach $350,000.
Minimum contributions:
$25 or $15 through payroll deduction.
Investment Options
Age-based investment options:
None.
Static investment options:
Select among 5 Vanguard portfolios, LifeStrategy Growth, LifeStrategy Moderate Growth, LifeStrategy Conservative Growth, Total Stock Market Index and Total International Stock Index
Underlying investments:
Vanguard mutual funds.
Underlying fund allocations:
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Investment performance link:
Premium subscription required for this data.
Portfolio Fees & Performance Lookup
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Fees & Expenses
Enrollment or application fee:
None.
Account maintenance fee:
$25 annually, waived for accounts with a Montana resident as beneficiary and for accounts with balances of $25,000 or more and for account with automatic bank deposits or by payroll deduction.
Program management fees:
0.67% - 0.77%
Expenses of the underlying investments:
Ranges from 0.05% to 0.21%
Total asset-based expense ratio:
0.82% - 0.89%
Taxes and other Benefits
Program match on contributions:
None.
State tax deduction or credit for contributions:
Contributions to a Montana 529 plan of up to $3,000 per year by an individual, and up to $6,000 per year by a married couple filing jointly, are deductible in computing Montana taxable income. Only contributions made by the account owner, the account owner's spouse, or the account owner's custodian/parent are deductible. Contribution deadline is December 31.
Value of in-state tax benefits:
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State tax recapture provisions:
The principal portion of rollovers, qualified withdrawals within three years of establishing the account, and nonqualified withdrawals from this plan are subject to Montana tax at the highest Montana marginal rate to the extent of prior Montana tax deductions, but only after removal of non-deducted contributions.
State tax treatment of qualified distributions:
Qualified distributions from Montana and non-Montana 529 plans are exempt.
State tax treatment of rollovers:
Montana follows tax-free treatment for rollovers into a Montana 529 plan. Montana tax treatment of rollovers out of a Montana 529 plan is unclear, as Montana law may require that the rollover be treated as a nonqualified withdrawal.
Does the sponsoring state exclude the value of an account for state financial aid purposes?
No
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
No
Does the program have a formal agreement with a rewards program or outside scholarship program?
Yes, with the Upromise rewards service.
The Montana Monthly Education Savings Award provides Montana residents with the chance to receive $1,000 towards any MFESP college savings option. Every month, new account holders, as well as those who have enrolled in the drawing, have a chance to win. To be eligible to receive the award, an entrant must be a Montana resident and open an MFESP Bank Plan or Investment Plan account during the month or complete the online form available on College Savings Bank’s website.
Statutory protection of an account from creditors:
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Distributions & Terminations
To whom are distributions made payable:
Eligible educational institution, beneficiary, or account owner, as directed by the account owner.
Account Changes
Policy regarding participant/owner changes:
Accepts requests to transfer account ownership.
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:
Premium subscription required for this data.
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