Montana Medical Savings Account
Save for future healthcare costs and reduce your Montana state income tax at the same time. You can utilize a Montana Medical Savings Account (MSA) instead of or in addition to a federal HSA. Unlike an HSA, there is no requirement to be covered by a high deductible health plan.
- Summary
- Earn competitive interest on entire balance
- Contributions are tax deductible on your Montana state income tax return*
- Interest grows tax free
- Withdrawals are tax free when used for qualified medical expenses (see More Info tab)
- Money rolls over year-to-year automatically
- Account is owned by you, not employer
- Only $25 minimum balance to waive $5 monthly service charge
- FDIC insured
*Consult with a tax advisor.
- More Info
Qualified (tax-free) medical expenses include, but are not limited to, the following:
- Medical, vision, and dental expenses
- Health insurance premiums
- Prescription drugs
- Nursing and long-term care expenses
- Transportation for medical care
- Certain lodging expenses
- Crutches
- Hearing aids
- Medical expenses for a spouse or dependent child (in most cases)
Withdrawals for non-qualified medical expenses are subject to state income tax and a 10% penalty. The 10% penalty is waived for persons 65 and over or who have become disabled.
Contribution Limits
You may contribute up to $3,000 each year to your Montana MSA. Joint accounts are not allowed, but spouses are able to establish separate MSAs.
