HB1085

House Bill 1085 proposes updates to the Arkansas Brighter Future Fund Plan Act to align state law with current federal tax-deferred tuition savings program standards (26 U.S.C. § 529). The bill updates various reference dates in the code from January 1, 2020, to January 1, 2024, to incorporate the latest federal definitions and regulations. Notably, it introduces provisions for the tax-free rollover of funds from a 529 tuition savings account into a beneficiary's Roth individual retirement account (IRA), consistent with updated federal law. The bill also specifies the income tax treatment for these rollovers and maintains existing contribution deduction limits for state income tax purposes. Overall, the legislation ensures that Arkansas's 529 plan remains compliant with federal tax laws, facilitating modernized savings options for families and students.