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AR HB1085
Bill
Status
4/17/2025
Primary Sponsor
Karilyn Brown
Click for details
AI Summary
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Updates the Arkansas Brighter Future Fund Plan Act to conform with federal 26 U.S.C. § 529 as in effect on January 1, 2024, replacing the previous reference date of January 1, 2020
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Adds a new definition for "rollover to Roth individual retirement account" allowing direct trustee-to-trustee transfers from 529 accounts to Roth IRAs for designated beneficiaries, effective January 1, 2024
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Exempts qualified withdrawals, rollovers, and rollovers to Roth IRAs from Arkansas state income tax for designated beneficiaries
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Maintains existing contribution deduction limits: $5,000 per taxpayer annually for Arkansas 529 plans, $3,000 for out-of-state 529 plans, and $7,500 for out-of-state rollovers into Arkansas plans
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Effective for tax years beginning on or after January 1, 2024; approved April 17, 2025
Legislative Description
To Adopt Federal Law Concerning Tax-deferred Tuition Savings Programs; And To Amend The Income Tax Liability For Rollover Contributions From An Arkansas Brighter Future Fund Plan To A Roth Individual Retirement Account.
Last Action
Notification that HB1085 is now Act 802
4/17/2025