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.
Impact
The implications of HB 1085 are significant for taxpayers participating in tuition savings accounts established under the Arkansas Brighter Future Fund Plan. The bill outlines that qualified withdrawals and rollovers to Roth IRAs will be exempt from state income tax, increasing the attractiveness of saving for education expenses. This alteration in tax policy aligns Arkansas with the evolving federal landscape and presents new financial planning opportunities for families aiming to set aside funds for educational expenses.
Summary
House Bill 1085 seeks to amend the Arkansas Brighter Future Fund Plan Act, primarily by adopting changes based on updated federal laws regarding tax-deferred tuition savings programs. The bill specifically adjusts the tax treatment of distributions made from tuition savings accounts and facilitates rollovers into Roth individual retirement accounts. By doing so, it aims to enhance the state's compliance with federal regulations while ensuring that Arkansas residents can benefit from federal tax advantages associated with education savings plans.
Sentiment
The general sentiment surrounding HB 1085 appears to be largely positive, especially from educational stakeholders and financial planners who see the updates as a beneficial expansion of educational savings options. Supporters argue that this bill will promote financial literacy and empower families to plan better for higher education costs. However, some concerns may exist regarding the potential complexity introduced by the amendments, particularly for families unfamiliar with the roll-over processes.
Contention
Notably, while the bill simplifies several aspects of the existing tuition savings rules by aligning them with federal standards, it also creates added responsibilities for the Section 529 Plan Review Committee to ensure adherence to these standards. This reliance on federal guidelines could spur discussion regarding local control versus federal oversight in the administration of education savings accounts.
To Create The Protect Arkansas Act; To Amend Arkansas Law Concerning Sentencing And Parole; To Amend Arkansas Law Concerning Certain Criminal Offenses; And To Create The Legislative Recidivism Reduction Task Force.
To Amend The Law Concerning Tax Credits For Certain Individual Political Contributions; To Increase The Amount Of A Tax Credit For Political Contributions In Arkansas; And To Amend Portions Of Initiated Act 1 Of 1996.
To Amend The Age In Which Members Of Certain Plans Under The Arkansas Local Police And Fire Retirement System And Local Police And Fire Pension And Relief Funds Begin To Receive Fund Distributions.
To Reduce The Income Tax Levied On Individuals, Trusts, Estates, And Corporations; To Transfer Surplus Funds To The Arkansas Reserve Fund Set-aside; And To Declare An Emergency.
To Reduce The Income Tax Levied On Individuals, Trusts, Estates, And Corporations; To Transfer Surplus Funds To The Arkansas Reserve Fund Set-aside; And To Declare An Emergency.
Concerning Cybersecurity Insurance; To Establish The Arkansas Self-funded Cyber Response Program And The Arkansas Cyber Response Board; And To Create The Arkansas Self-funded Cyber Response Program Trust Fund.
To Allow Nonprofit Organizations To Contribute To A New Or Existing Arkansas Brighter Future Fund Plan Account; And To Require The Treasurer Of State To Facilitate Contributions By A Nonprofit Organization.
To Create The Brighter Start Act Of 2025; And To Require The Treasurer Of State To Make A One-time Contribution To Each Existing And Future Arkansas Brighter Future Fund Plan Account.
Congratulating Governor Dolph Briscoe on his receipt of the 2009 Pathfinder Award from the Greater San Antonio Chamber of Commerce and honoring him and his family for their philanthropy in San Antonio.