(1) Every self-administered account holder or account administrator is required to annually submit the following information regarding each account:

(a) name of the account holder;

(b) address of the account holder;

(c) taxpayer identification number of the account holder;

(d) deposits made during the tax year by the account holder;

(e) amount of withdrawals made during the tax year by the account holder;

(f) dates of any withdrawals;

(g) interest or other income earned on the principal and excess contributions of the account; and

(h) amount of penalties withheld and remitted.

(2) The self-administered account holder must also include the name and address of where the account is established and the account number.

(3) Both the contributions and any interest, or other income, earned on the account are to be segregated by the self-administered account holder or account administrator from all other accounts.

(4) Each self-administered individual account holder must establish a separate account with a financial or other approved institution. The account must be segregated from all other accounts.

(5) Any year-end reporting of interest, or other income, earned to the taxing authorities and to the account holder of interest, or other income earned must be done so that any interest, or other income earned on that account could be separately identified.

(6) For the purpose of determining the amount of interest, or other income, earned on the principal which is excluded from Montana adjusted gross income, when interest or other income earned is on principal and excess contribution, the provisions of ARM 42.15.906 apply.

(7) On or before January 31, an account administrator other than a self-administered account holder must file the information required under (1) on forms provided by or authorized by the department.

(8) Each self-administered account holder must file the information required in (1) either on a Montana form FTB provided by the department or any means available, so long as the necessary information is provided and remitted with the individual income tax form for the corresponding tax year.

(9) Self-administered account holders or account administrators who withhold penalties on monies used for items other than eligible expenses must submit the penalties to the department.

(a) Account administrators, other than self-administered account holders, must remit the penalties monthly by the 15th day of the following month when the total amount of penalties exceeds $500.

(b) Account administrators, other than self-administered account holders, whose total penalties withheld during the calendar year are less than $500 must remit the penalties on or before January 31 of the following year to the department.

(c) Self-administered account holders must complete and file Montana form FTB-P and remit the penalty shown on Montana form FTB-P with the individual income tax return (Montana form 2). 

(10) Failure to remit any withheld penalties within the time provided is considered to be an unlawful conversion of trust money. Penalties provided in 15-1-216 and 15-30-2641, MCA, apply to any violation of the requirement to collect, truthfully account for, and pay amounts required to be withheld from ineligible withdrawals of the account holder.