Withdrawal Information

Before you make a withdrawal for K-12 tuition, consider the following:

Effective January 1, 2018 savings, up to $10,000 per tax year per beneficiary, in the aggregate from all 529 plan accounts held for the same beneficiary, may be withdrawn and used for expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school (K-12 Tuition Expenses) without incurring federal income tax on the earnings portion of the withdrawal.

Earnings on withdrawals up to $10,000 per tax year per beneficiary from your Arkansas Brighter Future Direct Plan account used for K-12 Tuition Expenses will also be free of Arkansas state income tax. If you are not an Arkansas taxpayer, the state(s) where you pay income tax may differ in its state income tax treatment of K-12 Tuition Expenses. It is the account owner’s responsibility to ensure that distributions for K-12 Tuition Expenses do not exceed the limit for a beneficiary. You should consult with a tax advisor regarding your individual situation.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.