Medical savings account could be beneficial

Montanans can open a medical care savings account or make deposits into existing MSAs before Dec. 31 to reduce their state income taxes for 2024, according to Marsha Goetting, Montana State University Extension family economics specialist.

MSA account holders may deposit up to $4,500 to use for eligible medical expenses. The Montana Legislature has permanently extended the Montana Medical Care Savings Account Act.

A person with taxable income exceeding $20,500 could save approximately $265 ($531 for a married couple) in state income taxes by opening an MSA and depositing up to $4,500 for tax year 2024, Goetting said. Interest earned on the MSA is not subject to Montana income tax, and the balance at the end of the year rolls over for future use.

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