Fostering education success for foster children.
As a foster parent, you have a key role in establishing a successful and promising future for the children in your care. You can also help form a foundation built on the importance of learning, and create a desire for higher education by investing in their educational future. By opening an Arkansas 529 account, you can help them prepare for post-secondary educational opportunities like attending a four-year or two-year university or a vocational school.
How the plan works.
- Any foster parent can open an Arkansas 529 account for children in their care.
- Arkansas Department of Human Services' Division of Children and Family Services (DCFS) will maintain ownership of their account until the child is permanently placed.
- If the child is adopted, ownership of their Arkansas 529 account will be moved to the adoptive parent.
- If the child is still in foster care at the age of 18, ownership of their Arkansas 529 account will be transferred to the child.
Why the Arkansas 529 plan?
The plan offers a variety of benefits for financial and education savers in Arkansas, including:
- A state tax deduction of up to $5,000 (and up to $10,000 for married couples filing jointly) for contributions to Arkansas 529 plans.
- Tax deferred earnings, and tax-free qualified withdrawals.
- A low minimum investment - open your account for as little as $25 a month.
For more information on opening up an Arkansas 529 plan for a child or children in foster care, call 501-682-1406.