Weekly Update from State Representative DeAnn Vaught

Paving the way for a brighter future through education is a goal shared by many families. For parents in Arkansas, the Arkansas Brighter Future 529 Program is a valuable tool designed to help them save and invest in their children’s education. This week, we want to remind you about the valuable resource and all the advantages it has to offer. 

The Arkansas Brighter Future 529 Plan (formerly the GIFT Plan), sponsored by the Treasurer of State’s office, is an education-savings plan that allows your savings to grow tax-deferred through a wide variety of investment options. Later, the money can be withdrawn tax-free to pay for qualified higher education costs like tuition, room and board, and supplies at nearly any two- or four-year college, university, vocational, or trade school. 

In 2018, the federal government expanded the use of 529 funds to include private, parochial, and public K-12 tuition. In 2021, the government broadened the plan even more to allow 529s to cover the cost of apprenticeship programs and pay down student loan debt. 

Arkansas taxpayers are eligible to deduct up to $5,000 (up to $10,000 for married couples) from their adjusted gross income calculation for contributions to an Arkansas Brighter Future 529 Plan account. The savings have the potential to grow at a faster rate than if you had invested in a comparable taxable account. 

You can also invite friends and family to be a part of your savings journey. With a Ugift® code that links directly to your account, they can give the gift of education for a birthday, holiday, special occasion, or even “just because.” Anyone who contributes may be eligible for an Arkansas state tax deduction, too. 

More than 27,000 Arkansas Families are served by the Arkansas Brighter Future 529 Plan. You can begin saving by visiting www.brighterfuturedirect529.com.

Treasurer of State Dennis Milligan Announces Milestone with Arkansas 529 Plan; Logo and website given fresh look, benefits remain

Little Rock, Ark. – The Arkansas 529 Education Savings Plan, established in 1999, is getting a new name to more accurately reflect the plan’s ever-evolving benefits for Arkansans. It will now be called the Arkansas Brighter Future 529 plan, Treasurer of State Dennis Milligan, whose office administers the program, announced today.

“We’ve had a great history with the Arkansas 529 plan,” Milligan said. “We’ve been diligent and have worked with many champions in the state legislature to keep the program current with federal laws, and this was a natural time to ensure the brand reflected all the offerings 529s now have.”

The “offerings” Milligan mentions refer mainly to how funds from the plan can be used. The Arkansas 529 plan has traditionally been used to pay for college and university expenses and trade or vocational school costs.

“One of the first major changes to the plan happened in 2018 when K-12 private school tuition became a qualified expense. Then in 2021, the federal government broadened the plan even more to allow it to cover apprenticeship programs, as well as pay down student loan debt,” Milligan explained. “So as the program has evolved over time, we felt like this was an appropriate time to rebrand to allow people to see that their child’s future – whatever it may look like – could be even brighter with an Arkansas Brighter Future 529 plan.”

Fran Jansen, director of Arkansas Brighter Future 529 plans for the state, said the new logo and website better reflect the brand and its direction moving forward.

“We’ve completely revamped the 529 website to make it more user-friendly,” Jansen said. “For the new logo, we chose a star to resemble light. We designed the star to be red as a nod to Arkansas. Even the playful design of the star was intentional.”

Another factor in rebranding the program to “Arkansas Brighter Future 529” is to highlight the fact that these accounts can now be used for so much more than higher education, Milligan said.

“Not every child in Arkansas will choose to go to college, so we wanted something that reflects that no matter what path a family decides is best for their child, they can still use the funds from their 529 to help brighten their future,” he said.

The Arkansas 529 plan has grown 120% to more than $1.2 billion in assets under Milligan’s administration. Accounts may be opened online for as little as $25 with no requirement for additional deposits, and account owners may be eligible to deduct up to $10,000 in contributions from their Arkansas adjusted gross income taxes.

All of the benefits currently offered by the Arkansas 529 plan will remain the same, Milligan said.

For more information, please visit BrighterFutureDirect529.com or call 501-682-1406.