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Bill

HB 1085

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.

2025 Regular Session Introduced by Karilyn Brown and 1 co-sponsor

Arkansas aligns 529 education savings plan rules with federal law and allows tax-advantaged rollovers from state education funds into Roth retirement accounts.

Notification that HB1085 is now Act 802
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WeVote Research Nonpartisan
Bill Summary · HB 1085

Legislative bill overview

HB 1085 aligns Arkansas state law with federal regulations governing 529 tax-deferred tuition savings plans and modifies tax treatment for rollovers from Arkansas's Brighter Future Fund into Roth Individual Retirement Accounts. The bill has already passed both chambers and been signed into law as Act 802.

Why is this important

This legislation affects families saving for education by ensuring state law compliance with federal tax code changes, potentially expanding flexibility in how education savings can be transferred to retirement accounts. The modification to rollover tax treatment could provide tax advantages for savers transitioning funds between account types.

Potential points of contention

  • Limited public information: The bill's specific provisions regarding which federal law changes are being adopted and the exact tax treatment modifications are not detailed in available documents, making full impact assessment difficult
  • Roth conversion implications: Changes to rollover taxation could benefit higher-income savers differently than middle-income families, potentially raising equity questions about who benefits most
  • Federal-state coordination: Adopting federal law without clear state implementation details could create confusion about compliance requirements for financial institutions and account holders

Compiled from official sources — confirm details with the bill’s official record.

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