Are you paying more out of pocket medical expenses than in the past years, and don’t have a Montana Medical Care Savings Account? If you don’t currently have a MSA, now is a great time to consider opening one. You can collect all of your out of pocket medical expenses for the year, open your MSA, make a deposit, and then immediately withdraw the funds before the last business day of the year.
Montana residents can contribute individually up to $3,000.00 per year to their MSA and exclude the contribution amount from taxable income on their state tax returns. The funds can be withdrawn for eligible medical expenses as defined in the IRS 502 Publication “Medical and Dental Expenses."
The MSA is not a “use it or lose it” program, and you are not locked into monthly contributions. MSA can benefit those who do not participate in a Flexible Spending Plan or when there are unexpected medical bills; it is also an excellent planning tool when considering larger expenses such as orthodontics or medical procedures.
For more information, please see the Montana Medical Care Savings Accounts information sheet below.