The bill amends the Arkansas Brighter Future Fund Plan Act to align state law with recent changes in federal law regarding tax-deferred tuition savings programs. Key updates include the adoption of federal provisions concerning the income tax treatment of distributions and rollover contributions from the Arkansas Brighter Future Fund Plan to Roth Individual Retirement Accounts (IRAs). The bill specifies that rollovers to Roth IRAs will qualify as tax-free distributions under federal law, effective for tax years beginning on or after January 1, 2024. Additionally, the bill updates various definitions and provisions to reflect the new effective date of January 1, 2024, replacing the previous date of January 1, 2020.

The bill also includes provisions for the administration of the Arkansas Brighter Future Fund Plan, ensuring compliance with federal regulations. It outlines the powers and duties of the Section 529 Plan Review Committee, which oversees the plan's administration. Furthermore, the bill clarifies the tax implications for contributions, withdrawals, and rollovers related to the fund, ensuring that qualified withdrawals and rollovers to Roth IRAs are exempt from Arkansas income tax. Overall, the bill aims to enhance the state's tuition savings program by incorporating federal guidelines and improving tax benefits for Arkansas residents.

Statutes affected:
Old version HB1085 V2 - 1-29-2025 09:00 AM: 6-84-102, 01-29-2025, 6-84-103(5), 6-84-103(10), 6-84-103(12), 6-84-103(14), 6-84-103(17), 6-84-103, 6-84-105(b), 6-84-105(c), 6-84-106, 6-84-108(b), 6-84-109(b), 6-84-111(a), 6-84-111(b), 6-84-111(c), 6-84-113, 26-51-414(b)
Old version HB1085 Original - 1-13-2025 02:17 PM: 6-84-102, 6-84-103(5), 6-84-103(10), 6-84-103(12), 6-84-103(14), 6-84-103(17), 6-84-103, 6-84-105(b), 6-84-105(c), 6-84-106, 6-84-108(b), 6-84-109(b), 6-84-111(a), 6-84-111(b), 6-84-111(c), 6-84-113, 26-51-414(b)
HB 1085: 6-84-102, 6-84-103(5), 6-84-103(10), 6-84-103(12), 6-84-103(14), 6-84-103(17), 6-84-103, 6-84-105(b), 6-84-105(c), 6-84-106, 6-84-108(b), 6-84-109(b), 6-84-111(a), 6-84-111(b), 6-84-111(c), 6-84-113, 26-51-414(b)
Act 802: 6-84-102, 01-29-2025, 6-84-103(5), 6-84-103(10), 6-84-103(12), 6-84-103(14), 6-84-103(17), 6-84-103, 6-84-105(b), 6-84-105(c), 6-84-106, 6-84-108(b), 6-84-109(b), 6-84-111(a), 6-84-111(b), 6-84-111(c), 6-84-113, 26-51-414(b)