If the untaxed element exceeds the untaxed plan cap, the originating fund should withhold
tax —
at the top
marginal rate plus Medicare levy — from the amount over the cap before releasing the
rollover to your fund.
The principal portion of
rollovers, qualified withdrawals within three years of establishing the account, and nonqualified withdrawals from this plan are subject to Montana
tax at the highest Montana
marginal rate to the extent of prior Montana
tax deductions, but only after removal of non-deducted contributions.