Forgot your username?

Sign up for online access

Skip to
main content

Arkansas Gift 529 logoEnroll

Put time and tax-advantaged investing to work.

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

  • A special AR tax deduction. Arkansas taxpayers can deduct up to $5,000 (up to $10,000 for married couples) of your Arkansas 529 GIFT Plan contributions from your Arkansas adjusted gross income.1
  • Tax-free withdrawals. Withdrawals for qualified expenses are exempt from federal and state tax.2
  • Gift-tax advantages. Contribute up to $15,000 (up to $30,000 for married couples) per designated beneficiary per year, without incurring federal gift tax consequences.
  • Estate planning benefits. Contribute up to $75,000 per designated beneficiary in a single year (up to $150,000 for married couples) by taking advantage of five years’ worth of federal tax-free gifts at one time.3
  • Additional AR taxpayer deduction. Contributions up to $3,000 per Arkansas taxpayer ($6,000 total per married couple) to a tax-deferred tuition savings program established by another state are deductible; provided that the taxpayer has not deducted the contribution in another state or on another state’s income tax return.
  • Rollover contribution benefits. Rollover contributions up to $7,500 per Arkansas taxpayer ($15,000 total per married couple) into the Plan from a tax-deferred tuition savings program established by another state are deductible in the tax year in which such contribution was rolled over into the Plan.

Tax advantages can make your dollars work harder. Year after year, the tax-deferred growth within a 529 plan can help your savings grow faster. The graph shows an initial investment of $2,500 into a 529 plan and a non-529 plan. After 18 years, the 529 plan has $41,463 in the account and the non-529 plan has $35,072.

Assumptions: $2,500 initial investment with subsequent monthly investments of $100 for a period of 18 years; annual rate of return on investment of 5% and no funds withdrawn during the time period specified; taxpayer is in the 30% federal income tax bracket for all options at the time of contributions and distribution. This hypothetical is for illustrative purposes only. It does not reflect an actual investment in any particular 529 plan or any taxes that may be payable upon distribution.

 

1Arkansas taxpayers can deduct up to $5,000 (up to $10,000 for married couples) of your Arkansas 529 GIFT Plan contributions from your Arkansas adjusted gross income with any unused excess contribution in a tax year being carried over to the next succeeding four tax years, beginning January 1, 2017.

2Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements and certain withdrawals are subject to federal, state, and local taxes.

3The gift will be prorated over five years. In the event the donor does not survive the five-year period, a prorated amount will revert back to the donor's taxable estate.

Ascensus Broker Dealer Services is the distributor of The Arkansas 529 GIFT Plan, Learn more about Ascensus Broker Dealer Services, LLC on FINRA's BrokerCheck FINRA's BrokerCheck.

For more information about the GIFT College Investing Plan (the "GIFT Plan"), call 1.800.587.7301 or click here to obtain a Program Description and Participation Agreement, which includes investment objectives, risks, charges, expenses and other information; read and consider it carefully before making an investment or sending money. Ascensus Broker Dealer Services, LLC (“ABD”), the Program Manager, and its affiliates have overall responsibility for the day-to-day operations, including investment advisory services, recordkeeping, administrative services and marketing of the GIFT Plan. 

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529 college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The GIFT Plan is a college tuition savings program sponsored by the State of Arkansas and administered by the Arkansas Section 529 Plan Review Committee ("Committee"). ABD, the Program Manager, and its affiliates have overall responsibility for the day-to-day operations, including investment advisory services, recordkeeping, administrative services and marketing of the GIFT Plan. The GIFT Plan's Portfolios invest in: (i) mutual funds; or (ii) an FDIC-insured omnibus savings account held in trust by the Committee at Sallie Mae Bank. Except for the GIFT Plan Savings Portfolio, investments in the GIFT Plan are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the GIFT Plan Portfolios you choose. Except to the extent of FDIC insurance available for the GIFT Plan Savings Portfolio, you could lose all or a portion of your money by investing in the GIFT Plan, depending on market conditions. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Not FDIC-Insured (except for the GIFT Plan Savings Portfolio). No Bank, State or Federal Guarantee. May Lose Value.