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6-84-111. Funds exempt from tax — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
6-84-111. Funds exempt from tax — Definitions.
(a)(1) Except as otherwise indicated in this chapter, interest, dividends, and capital gains from funds invested in the Arkansas Tax-Deferred Tuition Savings Program or a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as in effect on January 1, 2018, shall be exempt from Arkansas income taxes.
(2) For purposes of this section:
(A) “Taxpayer employee” means an employee of an employer with an account established under this chapter; and
(B) “Taxpayer employer” means a person that employs an individual with an account established under this chapter.
(b)(1) For tax years beginning on or after January 1, 2005, contributions to a tuition savings account established under this program may be deducted from the taxpayer's adjusted gross income for the purpose of calculating Arkansas income tax under § 26-51-403(b).
(2)(A) The deductible contributions shall not exceed five thousand dollars ($5,000) per taxpayer employee in any tax year.
(B) If the aggregate amount of contributions by a taxpayer during a tax year exceeds the limitation under subdivision (b)(2)(A) of this section, the unused aggregate amount may be carried forward to the next succeeding four (4) tax years.
(C) A taxpayer employer may make a matching contribution to the account of a taxpayer employee with an account established under this chapter that does not exceed five hundred dollars ($500) per contributing employee per year.
(3) Contributions to this program that have been deducted from the taxpayer employee's adjusted gross income for prior tax years shall be subject to recapture from the taxpayer employee if the taxpayer employee:
(A) Makes a subsequent nonqualified withdrawal from the account; or
(B)
Source: Arkansas Code — historical release 78 (November 6, 2020) · 6-84-111
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:6-84-111
Source file: gov.ar.code.title.06.odt
Pages: Not recorded – Not recorded
Passage SHA-256: b1543d391578f0a01b841adecfb9c79a77495948ed5cf8a91720465ba28658a2
Source location: content.xml paragraph 45565
Stored source content
6-84-111. Funds exempt from tax — Definitions.
(a)(1) Except as otherwise indicated in this chapter, interest, dividends, and capital gains from funds invested in the Arkansas Tax-Deferred Tuition Savings Program or a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as in effect on January 1, 2018, shall be exempt from Arkansas income taxes.
(2) For purposes of this section:
(A) “Taxpayer employee” means an employee of an employer with an account established under this chapter; and
(B) “Taxpayer employer” means a person that employs an individual with an account established under this chapter.
(b)(1) For tax years beginning on or after January 1, 2005, contributions to a tuition savings account established under this program may be deducted from the taxpayer's adjusted gross income for the purpose of calculating Arkansas income tax under § 26-51-403(b).
(2)(A) The deductible contributions shall not exceed five thousand dollars ($5,000) per taxpayer employee in any tax year.
(B) If the aggregate amount of contributions by a taxpayer during a tax year exceeds the limitation under subdivision (b)(2)(A) of this section, the unused aggregate amount may be carried forward to the next succeeding four (4) tax years.
(C) A taxpayer employer may make a matching contribution to the account of a taxpayer employee with an account established under this chapter that does not exceed five hundred dollars ($500) per contributing employee per year.
(3) Contributions to this program that have been deducted from the taxpayer employee's adjusted gross income for prior tax years shall be subject to recapture from the taxpayer employee if the taxpayer employee:
(A) Makes a subsequent nonqualified withdrawal from the account; or
(B) Rolls the account over to a tax-deferred tuition savings program established by another state or institution under 26 U.S.C. § 529, as in effect on January 1, 2018.
(4)(A) The contribution shall be recaptured by adding the amount previously deducted, not to exceed the amount of the nonqualified withdrawal or rollover, to the taxpayer employee's adjusted gross income for the tax year in which the nonqualified withdrawal or rollover occurred.
(B) The nonqualified withdrawal or rollover shall be taxable to the taxpayer employee, party, account owner, or designated beneficiary who actually makes the nonqualified withdrawal or rollover.
(c)(1)(A) For tax years beginning on or after January 1, 2017, contributions to a tuition savings account established under this program or a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2017, may be deducted from the taxpayer's adjusted gross income for the purpose of calculating Arkansas income tax under § 26-51-403(b).
(B) A taxpayer may not deduct from the taxpayer's adjusted gross income a contribution to a tax-deferred tuition savings program established by another state if the taxpayer deducted the contribution in another state or on another state's income taxes.
(2)(A) The deductible contributions for a tuition savings account established under this chapter shall not exceed five thousand dollars ($5,000) per taxpayer in any tax year.
(B) If the aggregate amount of contributions by a taxpayer during a tax year exceeds the limitation under subdivision (c)(2)(A) of this section, the unused aggregate amount may be carried forward to the next succeeding four (4) tax years.
(C) The deductible contributions for a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2017, shall not exceed three thousand dollars ($3,000) per taxpayer in any tax year.
(D) The deductible contributions for a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2017, that are rolled over into a tuition savings account established under this chapter shall not exceed seven thousand five hundred dollars ($7,500) per taxpayer in the tax year in which they were rolled.
(d)(1)(A) For tax years beginning on or after January 1, 2018, contributions to a tuition savings account established under the program or a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2018, may be deducted from the taxpayer's adjusted gross income for the purpose of calculating Arkansas income tax under § 26-51-403(b).
(B) A taxpayer may not deduct from the taxpayer's adjusted gross income a contribution to a tax-deferred tuition savings program established by another state if the taxpayer deducted the contribution in another state or on another state's income taxes.
(2)(A) The deductible contributions for a tuition savings account established under this chapter shall not exceed five thousand dollars ($5,000) per taxpayer in any tax year.
(B) If the aggregate amount of contributions by a taxpayer during a tax year exceeds the limitation under subdivision (d)(2)(A) of this section, the unused aggregate amount may be carried forward to the next succeeding four (4) tax years.
(C) The deductible contributions for a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2018, shall not exceed three thousand dollars ($3,000) per taxpayer in any tax year.
(D) The deductible contributions for a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as it existed on January 1, 2018, that are rolled over into a tuition savings account established under this chapter shall not exceed seven thousand five hundred dollars ($7,500) per taxpayer in the tax year in which they were rolled.
(e)(1) Qualified withdrawals from a tuition savings account established under this program or a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as in effect on January 1, 2018, will be exempt from Arkansas income tax with respect to the designated beneficiary's income.
(2)(A) Nonqualified withdrawals from a tuition savings account established under this program or a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as in effect on January 1, 2018, will be subject to Arkansas income tax.
(B) The nonqualified withdrawal will be taxable to the party, account owner, or designated beneficiary who actually makes the withdrawal.
(f) Any earnings on the contribution that are included in the refund will be subject to Arkansas income tax if an account owner receives a refund of contributions to a tuition savings account established under this program or a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529, as in effect on January 1, 2018, because of either:
(1) The death or disability of the designated beneficiary; or
(2) A scholarship, allowance, or payment described in 26 U.S.C. § 135(d)(1)(B) or (d)(1)(C), as in effect on January 1, 2018, received by the designated beneficiary.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** A qualified tuition program shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such program shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations).
**(b) Qualified tuition program** For purposes of this section—
(1) **In general** — The term “qualified tuition program” means a program established and maintained by a State or agency or instrumentality thereof or by 1 or more eligible educational institutions—
(A) under which a person—
(i) may purchase tuition credits or certificates on behalf of a designated beneficiary which entitle the beneficiary to the waiver or payment of qualified higher education expenses of the beneficiary, or
(ii) in the case of a program established and maintained by a State or agency or instrumentality thereof, may make contributions to an account which is established for the purpose of meeting the qualified higher education expenses of the designated beneficiary of the account, and
(B) which meets the other requirements of this subsection.
Except to the extent provided in regulations, a program established and maintained by 1 or more eligible educational institutions shall not be treated as a qualified tuition program unless such program provides that amounts are held in a qualified trust and such program has received a ruling or determination that such program meets the applicable requirements for a qualified tuition program. For purposes of the preceding sentence, the term “qualified trust” means a trust which is created or organized in the United States for the exclusive benefit of designated beneficiaries and with respect to which the requirements of paragraphs (2) and (5)
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 529
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 529. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1732
TITLE 26—INTERNAL REVENUE CODE
§ 529
sociation were a corporation and as though the home-
owners association taxable income were the taxable in-
come referred to in section 11’’ and struck out provi-
sion that for purposes of this subsection, the surtax ex-
emption provided by section 11(d) not be allowed.
Subsec. (b)(2)(B). Pub. L. 95–600, § 403(c)(2), substituted
provision related to amount being determined accord-
ing to section 1201(a) for provision requiring an amount
of 30 percent.
Subsec. (c)(2). Pub. L. 95–600, § 701(n)(1), substituted
‘‘by individuals for residences’’ for ‘‘as residences’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1997 AMENDMENT
Pub. L. 105–34, title IX, § 966(e), Aug. 5, 1997, 111 Stat.
895, provided that: ‘‘The amendments made by this sec-
tion [amending this section] shall apply to taxable
years beginning after December 31, 1996.’’
EFFECTIVE DATE OF 1980 AMENDMENT
Pub. L. 96–605, title I, § 105(b), Dec. 28, 1980, 94 Stat.
3523, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] shall apply to tax-
able years beginning after December 31, 1980.’’
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 301(b)(7) of Pub. L. 95–600 ap-
plicable to taxable years beginning after Dec. 31, 1978,
see section 301(c) of Pub. L. 95–600, set out as a note
under section 11 of this title.
Pub. L. 95–600, title IV, § 403(d)(3), Nov. 6, 1978, 92 Stat.
2869, provided that: ‘‘The amendments made by para-
graphs (2), (3), and (4) of subsection (c) [amending this
section and sections 857 and 904 of this title] shall take
effect on the date of the enactment of this Act [Nov. 6,
1978].’’
Pub. L. 95–600, title VII, § 701(n)(2), Nov. 6, 1978, 92
Stat. 2907, provided that: ‘‘The amendment made
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 529
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 529. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-403. Income generally.
(a) The term “net income” means the adjusted gross income of a taxpayer less the deductions allowed by the Income Tax Act of 1929, § 26-51-101 et seq.
(b) “Adjusted gross income” means, in the case of an individual, gross income minus the following deductions:
(1) Trade and business deductions otherwise allowable as deductions under this chapter that are attributable to a trade or business carried on by the taxpayer if the trade or business does not consist of the performance of services by the taxpayer as an employee;
(2) Trade and business deductions of employees otherwise allowable as deductions under this chapter;
(3) Deductions that consist of expenses paid or incurred by the taxpayer in connection with the performance by him or her of services as an employee under a reimbursement or other expense allowance arrangement with his or her employer;
(4) Losses from the sale or exchange of property;
(5) Deductions attributable to property held for the production of rents and royalties;
(6)(A) Certain deductions of life tenants and income beneficiaries of property.
(B) In the case of a life tenant of property, an income beneficiary of property held in trust, or an heir, legatee, or devisee of an estate, the deduction for depreciation allowed by 26 U.S.C. § 167, as provided in § 26-51-428, and the deduction allowed by 26 U.S.C. § 611, as provided in § 26-51-429;
(7) Deductions for certain portions of lump-sum distributions from pension plans taxed under 26 U.S.C. § 402(e), as set forth in § 26-51-414;
(8) Deductions for moving expenses, as set forth in § 26-51-423(a)(4);
(9) Deductions for alimony payments;
(10) Deductions for separate maintenance payments;
(11) Deductions for interest forfeited to a bank, savings as
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-403
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-51-403. This identifies an authority to review, not proof of applicability.