Montana § 15-61-203 Withdrawal Of Funds From Account For Purposes Other Than Eligible Medical Expenses

Montana Statutes

§ 15-61-203 — Withdrawal Of Funds From Account For Purposes Other Than Eligible Medical Expenses

Montana § 15-61-203

Title 15TAXATION

Ch. 61MEDICAL CARE SAVINGS ACCOUNT

Part 2Medical Care Savings Account -- Administration

This text of Montana § 15-61-203 (Withdrawal Of Funds From Account For Purposes Other Than Eligible Medical Expenses) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 15-61-203 (2026).

Text

15-61-203 . Withdrawal of funds from account for purposes other than eligible medical expenses.

(1)An employee or account holder may withdraw money from the individual's medical care savings account for any purpose other than an eligible medical expense or for paying the expenses of administering the account only on the last business day of the account administrator's business year. Money withdrawn from an account pursuant to this subsection that had been excluded from taxation must be taxed as ordinary income of the employee or account holder.

(2)There is a penalty equal to 10% of the amount of a withdrawal for a withdrawal other than for eligible medical expenses or for expenses of administering the account or other than on the last business day of the account administrator's business

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15-61-203 . Withdrawal of funds from account for purposes other than eligible medical expenses. (1) An employee or account holder may withdraw money from the individual's medical care savings account for any purpose other than an eligible medical expense or for paying the expenses of administering the account only on the last business day of the account administrator's business year. Money withdrawn from an account pursuant to this subsection that had been excluded from taxation must be taxed as ordinary income of the employee or account holder.
(2) There is a penalty equal to 10% of the amount of a withdrawal for a withdrawal other than for eligible medical expenses or for expenses of administering the account or other than on the last business day of the account administrator's business year. The administrator may withhold the penalty from the amount of the withdrawal and, on behalf of the employee or account holder, pay the penalty to the department. Payments made to the department pursuant to this section must be deposited in the general fund. Money withdrawn from an account pursuant to this subsection must be taxed as ordinary income of the employee or account holder if it had been excluded from taxation.
(3) For the purposes of this section, "last business day of the account administrator's business year", as applied to an account administrator who is also the account holder or an employee, means the last weekday in December.