What is a Montana Medical Care Savings Account?

A Montana Medical Care Savings Account (MSA) allows Montanans to save money for medical expenses and long-term health care, and reduce their state income taxes at the same time. Any Montana resident taxpayer can designate any Montana bank or credit union account as a Medical Care Savings Account.

An MSA account must be separate from other accounts, and only the account holder has access to the funds. In 2026, each taxpayer can place up to $4800 in the account annually. This amount and any interest earned on this amount is state tax-free.

Medical expenses like Medicare Part B premiums, Medicare Supplement premiums, Medicare Part D premiums, deductibles and copays, dental expenses, eyeglasses, and hearing aids are eligible for reimbursement from an MSA. And, unlike Employer Flex accounts, any money remaining in the account at the end of the year is carried over into the new year and continues to earn tax-free interest.

For more information, contact The Education and Resource Center at 406-259-5212

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