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 amendments include updating the definitions and provisions related to the Arkansas Brighter Future Fund Plan to reflect the federal tax code as it stands on January 1, 2024. Notably, the bill introduces a new definition for "Rollover to Roth individual retirement account," which allows for tax-free transfers from the Arkansas Brighter Future Fund Plan to Roth IRAs, effective from January 1, 2024. Additionally, it modifies the income tax treatment of distributions and rollovers, ensuring compliance with federal regulations.

The bill also includes various deletions of outdated references to the year 2020, replacing them with 2024, thereby ensuring that the Arkansas Brighter Future Fund Plan remains current with federal law. Other provisions address the administration of the fund, the powers of the Section 529 Plan Review Committee, and the tax implications of contributions and withdrawals from the fund. The effective date for these changes is set for tax years beginning on or after January 1, 2024.

Statutes affected:
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)
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)
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)