- State Guaranty Association The Montana Life and Health Insurance Guaranty Association (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. Coverage for annuity benefits is generally $250,000 in present value per contract owner, per insurer. Verify current limits directly with the association. Annuities are not FDIC insured.
- Annuity Tax Treatment Montana generally taxes annuity income as ordinary income and partially taxes Social Security, following federal treatment. There is no state sales tax. Confirm your specific situation with a tax professional.
- State Insurance Department The Montana Commissioner of Securities and Insurance regulates annuities sold in Montana. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Montana generally provides a free look period of at least 10 days for annuity contracts, often longer for replacement contracts. Your contract states the exact period that applies to you.
- Best Interest Standard Montana has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Montana residents must act in the consumer's best interest.
Retiring in Montana
Montana draws retirees who want space and mountains. No sales tax helps, though its treatment of retirement income is less generous than many western states.
Learn before you buy
Start with what an annuity actually is, then see how the types differ and which myths to ignore. If someone has already shown you a product, get a free second opinion before you sign.