Bill > HB1085

This bill updates Arkansas' tax-deferred tuition savings program (the Arkansas Brighter Future Fund Plan) by aligning state law with federal tax code provisions as of January 1, 2024. The bill makes several key changes, including updating references to the federal tax code, modifying definitions related to qualified tuition programs, and introducing a new provision that allows direct rollovers from 529 college savings plans to Roth Individual Retirement Accounts (IRAs). The legislation maintains the existing $5,000 annual tax deduction for contributions to the state's tuition savings account, with the ability to carry forward unused deduction amounts for up to four years. It also clarifies tax treatment for various types of withdrawals, including qualified withdrawals, rollovers, and non-qualified withdrawals, ensuring that they are handled consistently with federal tax guidelines. Additionally, the bill updates the state's approach to rollover contributions from tuition savings accounts to Roth IRAs, specifying how these transfers will be treated for state income tax purposes. These changes aim to provide more flexibility for account holders and keep Arkansas' tuition savings program in sync with current federal tax regulations.

Budget and Finance, Education

https://arkleg.state.ar.us/Bills/Detail?id=hb1085&ddBienniumSession=2025%2F2025R