Montana 100% P&T Playbook - Federal & State Benefits

Big picture

What 100% P&T + Montana really unlocks

A 100% Permanent & Total rating isn't just a deposit on the first of the month. When you stack federal benefits with Montana programs, you can:

Provide tax-free income for life through VA disability compensation.
Cover healthcare for your spouse and kids with CHAMPVA, while you lean on VA health care for yourself.
Use Montana's property-tax relief for disabled veterans to cut the annual cost of a “forever home.”
Combine campus tuition waivers, federal DEA, and scholarships to make a Montana degree realistic with minimal debt.
Add quality-of-life boosts: discounted hunting/fishing licenses, parks, and plates.
Stack Montana 529 tax benefits with federal 529 rules and newer 529 → Roth IRA rollovers for your kids.

This guide assumes you're 100% P&T, live in Montana, and want something your spouse could grab from a drawer and actually use if they ever had to steer the ship.

Not legal or tax advice. Laws, income limits, and benefit formulas change. Use this as a planning map only. Then confirm specifics with the Montana Veterans Affairs Division, Department of Revenue, your county offices, schools, and a qualified tax/financial professional.

Federal layer

Core federal benefits for a 100% P&T family

1. VA disability compensation: your base paycheck

At 100% P&T, your VA disability compensation is steady, tax-free income. The exact amount depends on your dependents (spouse, children, parents), but none of it is subject to federal income tax — and it's not taxed as income by Montana either.

If you qualify for Special Monthly Compensation (SMC), you may get additional tax-free pay for certain severe disabilities, housebound status, or caregiver needs.
P&T status doesn't mean “never reviewed,” but it does greatly reduce the odds of a future rating reduction. Still, answer VA mail promptly.

2. VA health care for you

As a 100% service-connected veteran, you're in one of VA's highest priority groups for care:

Most care has no or very low copays, including mental health and many prescriptions.
Many 100% P&T veterans qualify for full VA dental care (Class IV eligibility), plus prosthetics, audiology, vision, and other specialties.
In a rural state like Montana, telehealth and VA community-care referrals are critical tools when the nearest VA clinic or hospital is hours away.

3. CHAMPVA: medical for spouse and kids

If you're 100% P&T and your dependents aren't eligible for TRICARE, your spouse and children are usually eligible for CHAMPVA:

It behaves like a civilian PPO-style plan with deductibles and cost-shares.
If your spouse has employer coverage, that plan usually pays first and CHAMPVA helps with the rest.
Kids generally stay eligible into their early 20s if they remain enrolled in school; always verify current CHAMPVA rules.

Don't drop CHAMPVA casually. It's extremely hard to replicate this kind of coverage on the open market. Even if employer insurance looks good, consider CHAMPVA as a secondary safety net rather than a disposable extra.

4. VADIP: dental options for your family

CHAMPVA doesn't include standard dental, but your dependents can often buy into the VA Dental Insurance Program (VADIP) through private carriers such as Delta Dental and MetLife.

Available to CHAMPVA beneficiaries and certain enrolled veterans.
You choose a plan level and pay monthly premiums like a normal dental plan.
Pairs well with VA dental for you, so the whole family has a complete medical + dental picture.

5. DEA (Chapter 35): stipends for school

Because you're 100% P&T, your spouse and children may qualify for Dependents' Educational Assistance (DEA).

DEA pays a monthly stipend directly to your dependent while they're in eligible education or training programs.
It stacks with Montana or campus tuition waivers and scholarships — DEA covers life costs that don't show up on a tuition bill.
Usage is limited by age windows and month caps, so you want an intentional, “which kid uses what when” plan.

6. Other federal “quality-of-life” perks

VA home loan funding fee waiver — saves thousands each time you use a VA mortgage to buy or refinance.
Commissary, Exchange, and MWR access in many cases, plus online exchange access for you and eligible dependents.
Access to some categories of Space-Available (Space-A) travel when allowed under current DoD policies.

Reality check: For anything that involves physical access (base, commissary, Space-A, etc.), policies change. Check your DoD ID card category and the current rules before committing to a long drive.

Montana layer

Key Montana benefits for 100% P&T veterans

1. Disabled veteran property-tax relief

Montana offers a Disabled Veteran Property Tax Relief program (often administered through the Department of Revenue) for certain 100% disabled veterans and unremarried surviving spouses. In plain language: if you qualify, the state can reduce a large share of the property tax on your primary residence, subject to income and value limits.

You typically must be rated 100% disabled due to service (or be an eligible surviving spouse).
Relief is based on household income and home value and may reduce a percentage of the tax due on a capped amount of market value.
You apply with the Montana Department of Revenue (and usually your local office) by a set deadline each year using your VA award letter and income documentation.

“Big Sky home” folder: Keep a small folder with your tax notices, property-tax relief applications, approval letters, and VA rating proof. If you move counties, reapply, or your income changes, you won't be hunting through random drawers.

2. Montana tuition waivers & veteran education perks

The Montana University System and individual campuses offer tuition waivers for some veterans and surviving dependents. Your 100% rating doesn't automatically unlock every waiver, but it often means your family is already tied into the federal benefits (DEA, GI Bill) that pair well with these state and campus programs.

Veterans' tuition waivers generally focus on honorably discharged veterans who meet residency and service requirements.
Separate waivers for war orphans and surviving dependents may apply if a Montana service member died in certain line-of-duty circumstances.
Each campus (UM, MSU, etc.) has its own veterans services and financial-aid office — that's where you ask, “Given I'm 100% P&T, what waivers and scholarships can my family tap here?”

Ask in pairs Always talk to both the veterans office and financial aid. One knows the waivers, one knows how they stack with Pell Grants, scholarships, DEA, and 529.

Watch the caps Most waivers cap the number of credits or years. Don't let your kid burn through a waiver on classes that don't count toward a degree.

3. Montana 529 (Achieve Montana) and college savings

Even if you expect waivers and DEA to handle a big chunk of tuition, a Montana 529 plan (such as Achieve Montana) is still powerful:

Montana taxpayers may qualify for a state income-tax benefit (currently structured as a deduction) on contributions up to certain annual limits, when contributing to an eligible Montana 529 plan.
529 money grows tax-deferred and can be used tax-free for qualified education expenses — not just tuition, but also room & board (within IRS limits), books, and some equipment.
If your kid scores big on waivers and scholarships, you can usually take penalty-free withdrawals on the earnings up to the amount of those scholarships (though you may still owe income tax and could trigger state “recapture” of earlier benefits).

Check the Montana angle. Montana may treat out-of-state 529s differently than its own, and rolling funds between plans or taking non-qualified withdrawals can trigger taxes or state benefit recapture. That's “sit down with a tax pro” territory.

4. Hunting, fishing, parks & plates

Montana shows a lot of its gratitude outdoors:

Discounted or special hunting and fishing licenses for certain disabled veterans, with details set by Montana Fish, Wildlife & Parks.
State park access discounts or perks, sometimes tied to your license plates or resident status.
Veteran and disabled-veteran license plates, plus potential breaks on some registration fees for eligible vets and surviving spouses.

For anything BMV or FWP-related, bring your VA rating letter, ID, and any existing approval letters so you're not making repeat trips.

Health stack & HSA

VA + CHAMPVA + VADIP + HSA in a rural state

Montana's geography matters — distances are big, and provider networks can be thin. The goal is to use VA and CHAMPVA to keep everyone covered while building long-term tax advantages where it makes sense.

A common 100% P&T “health stack” looks like:

You lean on VA health care (and VA dental if eligible) as your primary care system.
Your spouse and kids use CHAMPVA for medical and VADIP or another dental plan for teeth.
If one of you has access to a qualifying High-Deductible Health Plan (HDHP) through work, you explore opening a Health Savings Account (HSA).

The idea: with strong federal coverage handling many big-ticket events, you can use an HSA primarily as a long-term investment bucket for healthcare in your 60s, 70s, and beyond.

Quick HSA recap

Contributions (up to annual limits) are usually pre-tax or tax-deductible.
Growth inside the account is tax-free.
Qualified medical withdrawals are tax-free at any age. After 65, you can pull money for non-medical uses without penalty (but you'll pay regular income tax on those withdrawals).

Eligibility is picky. To contribute to an HSA, a person must be covered by an IRS-qualifying HDHP and not have disqualifying other coverage or Medicare. Some uses of VA care and CHAMPVA can affect HSA eligibility month-to-month. Have a tax professional review your exact setup before you build an HSA strategy around it.

Why this pairs well with 100% P&T coverage

VA + CHAMPVA knock down many unpredictable, high-cost medical events.
That makes it realistic to max the HSA each year and invest most of it instead of spending it immediately.
By retirement, a well-fed HSA can cover Medicare premiums, hearing aids, dental, glasses, and long-term care-related expenses (within IRS limits) out of a dedicated, tax-advantaged pool.

Micro case study: A 40-year-old 100% P&T vet in Montana uses VA care. Their spouse works in town, has an HDHP + HSA, and the family is on CHAMPVA. They max out the HSA annually but pay day-to-day bills from regular cash flow. Two decades later, they have a six-figure HSA funding healthcare in retirement, while VA and CHAMPVA handled most of the heavy lifting along the way.

Education & 529 strategy

Montana schools, DEA, and 529 → Roth planning

Step 1: Start with what the school can waive

Before you panic about four years of sticker-price tuition, ask what can be waived or discounted at your kid's target Montana school:

Veteran tuition waivers for you, if you're going back to school yourself.
Waivers or discounts for surviving dependents (war-orphan style programs) in the event of a service-related death.
Campus-based scholarships and need-based aid that stack with DEA and federal aid.

The goal is to build a path where tuition and mandatory fees are mostly handled by a mix of waivers, grants, and federal benefits — so loans become optional rather than automatic.

Step 2: Layer DEA as the living-expense stipend

Once your child or spouse is using DEA, think of it as the cash-flow engine for day-to-day living expenses while they're in school:

School-side aid and waivers pay tuition and fees to the campus.
DEA pays a monthly stipend directly to your dependent, which can cover rent, food, gas, and books.
A part-time job rounds it out so your kid can graduate with little or no debt if they're disciplined.

Make them part of the plan. Sit down with your kid and show them: “This is what DEA pays, here's what waivers cover, here's what a small job does.” When they understand the stack, they're more likely to protect it.

Step 3: Use a Montana 529 for flexibility and the state benefit

A Montana 529 (like Achieve Montana) becomes a flexible tool for filling gaps and grabbing state tax benefits:

As Montana taxpayers, you may qualify for a state income-tax deduction on eligible contributions, up to an annual limit.
Use 529 funds primarily for things waivers and DEA don't fully handle — housing, meal plans, gear, and certain apprenticeships or trade programs.
Encourage grandparents and other family members to contribute directly to the 529 instead of handing out random checks; it keeps the money tied to education and may give them their own tax benefit.

Step 4: Leave the door open for 529 → Roth IRA

Under newer federal rules, certain leftover 529 money can be rolled into a Roth IRA for your child, subject to:

The 529 being open long enough (currently at least 15 years).
Annual Roth contribution limits and your child's earned income in that year.
A lifetime rollover cap per beneficiary on total 529 → Roth transfers.

Montana recapture risk. Moving 529 money into a Roth IRA can trigger give-back of some Montana tax benefits you took earlier on contributions. Have a pro run the numbers before you pull the trigger on a big rollover.

Step 5: A simple Montana family timeline

1

Birth → middle school

You open a Montana 529 in your child's name and put in what you can. Some years you hit the contribution needed to fully use the state benefit, some years you don't. The win is: the account exists, the 15-year clock starts, and the money grows.

2

High school & planning

You meet with the Montana or out-of-state school's veterans office and financial-aid office: “Here's my 100% P&T status; here's what my kid may be eligible for (DEA, campus waivers). How will this stack?” You adjust the 529 contribution plan based on what they tell you.

3

College years

Tuition and required fees are mostly covered by GI Bill, waivers, and scholarships. DEA + part-time work + selective 529 withdrawals cover living costs. You try not to drain the 529 unless needed, leaving some fuel in the tank.

4

Early career & Roth jump-start

Your kid graduates with little or no debt and a job. The 529 still has a balance. Over several years, you roll eligible 529 dollars into a Roth IRA in their name (within annual and lifetime limits, and accounting for any Montana tax recapture).

Result: your child got heavily subsidized education and walks into adulthood with a Roth IRA already online that can grow for 40+ years.

Checklist

Quick checklist for a Montana 100% P&T family

1. Build a “Big Sky binder” Keep your DD214, VA rating letter showing 100% P&T, CHAMPVA cards, marriage and birth/adoption certificates, and any Montana approval letters (property tax relief, license perks, tuition waivers) in one place.

2. Turn on federal family coverage Enroll in VA health care, apply for CHAMPVA and VADIP where eligible, and make sure your spouse understands DEA basics and timelines for each child.

3. Claim Montana property-tax relief Talk to the Montana Department of Revenue or your local office about Disabled Veteran Property Tax Relief. File the forms on time and keep copies of everything in your binder.

4. Map the education path early For each kid, list potential schools, who to contact at the veterans and financial-aid offices, and how DEA, waivers, and 529 savings might plug in.

5. Decide on an HSA strategy (or not) If an HDHP + HSA is available at work, have a tax pro confirm who in the home is truly HSA-eligible given your VA and CHAMPVA usage before leaning on it as a major strategy.

6. Write a one-page “if something happens” sheet In plain language list: VA comp, CHAMPVA, any tuition waivers, DEA, property-tax relief, plates/perks, where the logins and binder are, and the phone numbers for your VSO and key county offices.

Mindset shift: You already earned these benefits. The win now is to simplify and document them so your spouse or kids could keep everything running even if they're the ones at the controls someday.

Maxing Out Federal, State, and Family Benefits Under Big Sky

Build a “family benefits stack” once, reuse it for decades.