Arkansas 529 plan

Arkansas 529 Plan:

Program match on contributions: Beginning in 2008, the program provides matching grants of up to $500 annually to eligible Arkansas families, based on household income level. For adjusted household income of $30,000 or less, the matching rate is $2 for each $1 contributed. For income of $30,001 to $60,000, the matching rate is $1 for each $1 contributed. Applications for matching grants are accepted each year between January 1 and April 30.
 * Open to Residents
 * Open to non-residents

State tax deduction or credit for contributions: Contributions to the Arkansas 529 plan of up to $5,000 ($10,000 for married taxpayers filing jointly) per year are deductible in computing Arkansas taxable income. Contribution deadline is December 31. For 2007, contributions made by check must be received on or before January 7, 2008.

State tax treatment of rollovers:

Arkansas follows federal tax-free treatment for rollovers except that outbound rollovers are subject to the recapture of prior state tax deductions.

Age-based investment options: The Age-Based option is offered in three different risk levels (Aggressive, Moderate, and Conservative) each containing four or five portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the number of years to expected enrollment, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options: Select among five multi-fund portfolios with varying risk tolerances and a money-market portfolio.

Single Funds All portfolios have a 0.85% ER.

Expenses: 0.85%; maintenance fee: $20 annually (waived for Arkansas residents)


 * Direct link to plan site
 * Plan document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans