The award is given once a month to reward those looking to build a future for their child through college savings. James Pontrelli, is October’s winner. Mr. Pontrelli was registered for the October drawing by entering online at http://montana.collegesavings.com (http://montana.collegesavings.com)
The MFESP offers two programs to save for college, available nationwide. The MFESP Bank Plan, offered through the Program Manager, College Savings Bank, features three CD savings options that provide FDIC insurance* and principal protection. The MFESP Investment Plan features five investment options in two categories, which invest in mutual funds from The Vanguard Group, Inc., a global investment management company.
Montana residents who contribute to the MFESP, a State-sponsored 529 plan, are eligible to receive a $3,000 deduction to gross income per taxpayer, or $6,000 for those married, filing jointly based on contributions. In addition, earnings grow tax-free and distributions to pay qualified education expenses are tax-free.** Assets held in an MFESP account can be used to pay for a beneficiary’
“The Montanan Family Education Savings Program is excited to be able to offer the $1000 College Savings Award to help Montanans to save.” said Amy Berry, Montana University System’s College Savings Administrator. “James is saving for his son’s higher education and we hope his example of saving will encourage other Montana families to think about their child’s future as well.”
About the $1,000 College Savings Award
The $1,000 College Savings Award awards one $1,000 each month to a randomly selected new account owner or those who have enrolled in the drawing. All new account owners for the specified month are automatically eligible to win. Current account owners and those without an account can register for the award by filling out the entry form online.
Official rules are available at
Montana Guaranteed Student Loan Program (MGSLP) and Student Financial Services are programs within the Office of the Commissioner of Higher Education. MGSLP is the designated guarantor of Federal Family Education Loans in Montana and additionally guarantees loans on a regional and national level. Located in Helena, Montana, SFS administers a variety of state, federal, and private grant and scholarship programs. SFS also administers Montana’s 529 plan, the Montana Family Education Savings Program, as well as both the Montana University System Honor Scholarship and the Governor’s Postsecondary Scholarship Program.
*The Federal Deposit Insurance Corporation (FDIC) generally insures, with respect to each FDIC-insured institution, deposit accounts that are held in the same right and capacity up to the maximum amount set by federal law, currently $250,000. An account owner’s interest in the insurable balance of a College Savings Bank CD account is insured by the FDIC on a pass-through basis, together with any other deposit accounts the account owner holds at College Savings Bank, up to the maximum amount.
** To be eligible, the contribution must be made to your account, an account owned by your spouse or an account owned by your child or stepchild if your child or stepchild is a Montana resident. Eligible contributions are deductible in computing Montana adjusted gross income for the tax year in which they are made. Contributions may be subject to recapture in certain circumstances, such as a non-qualified withdrawal or a withdrawal or distribution from an account that was opened within three years prior to the date of the withdrawal or distribution (Recaptured Withdrawal). If the account owner is no longer a Montana resident at the time of a Recaptured Withdrawal, the program manager or its service provider may withhold the potential recapture tax from the Recaptured Withdrawal.