Tax Advantages

With an Arkansas Brighter Future 529 Plan account, your savings has the potential to grow at a faster rate than if you invested in a comparable taxable account. The plan offers several tax advantages that can help you save more for education, including:

Arkansas Taxpayer Deduction

Arkansas taxpayers may be eligible to deduct up to $5,000 (up to $10,000 for married couples making a proper election) in Arkansas Brighter Future 529 Plan contributions from their Arkansas adjusted gross income calculation on their Arkansas state income taxes.¹

Qualified Tax-Free Withdrawals

Withdrawals for qualified expenses are exempt from federal and state tax.²

Gift-Tax Advantages

Contribute up to $19,000 per beneficiary annually ($38,000 for married couples making a proper election) with no gift-tax consequence.

Estate Planning Benefits

Contribute up to $95,000 per designated beneficiary in a single year (up to $190,000 for married couples) by taking advantage of five years’ worth of federal tax-free gifts at one time.³

Carry Forward Advantages

Arkansas taxpayers who contribute more than $5,000 (more than $10,000 for married couples making a proper election) to the plan in one tax year may carry forward those additional funds to the next succeeding four (4) tax years.

Additional Taxpayer Advantages

Contributions up to $3,000 per Arkansas taxpayer ($6,000 for married couples making a proper election) to a tax-deferred tuition savings program established by another state are deductible per year; provided that the taxpayer has not deducted the contribution on another state’s income tax return.

Rollover Contribution Benefits

The State of Arkansas offers 529 plan contributors a one-time state tax deduction of $7,500 when they roll their out-of-state 529 plan into an Arkansas Brighter Future 529 Plan.

Arkansas Business Advantages

Arkansas employers can receive a business tax deduction of up to $500 per each employee match into an Arkansas Brighter Future 529 Plan account.