The Arkansas Brighter Future 529 Plan, along with other 529 plans across the country, is celebrating 529 Day during May by encouraging families to open and contribute to a plan to begin saving for their loved one’s education.
“May 29th is a day dedicated to showcasing the importance of saving for a child’s education,” said Treasurer of State Dennis Milligan, whose office administers the Arkansas Brighter Future 529 Plan. “The Arkansas Brighter Future 529 Plan offers Arkansans up to $10,000 in state tax deductions for contributions they make to their loved one’s Arkansas 529 account.”
A 529 account is an investment account that has the potential to grow over time. 529 funds can be used for tuition at college or trade school, as well as textbooks, computers and other supplies such as tools for a trade. Additionally, funds can be used for tuition at private K-12 schools, apprenticeship programs and student loan repayment.
“The Arkansas Brighter Future 529 Plan is designed to help your loved one have a brighter future – whatever that may look like,” Milligan said. “The money can be used at schools nationwide. Plus, the plan is flexible in that the funds can be transferred to another family member if the initial beneficiary doesn’t use them.”
As of December 2021, more than $480.3 billion had been invested for education around the country in 15.7 million 529 accounts, according to the College Savings Plan Network.
“We’ve had a great history with the Arkansas 529 program,” Milligan said. “We’ve grown the plan’s assets under management by 120% since I came into office in 2015. We’ve promoted the plan heavily and have been diligent about keeping the plan up-to-date with federal law concerning the expenses that can be covered with a 529 plan.”
An account can be opened in as little as 10 minutes with a minimum of $25, he added. To open an Arkansas Brighter Future 529 account, visit BrighterFutureDirect529.com or call 501-682-1406.
“The gift of an education is an investment that can have generational impact,” Milligan said. “The earlier you start saving for a child’s education, even if it’s just a little at a time, the better. No amount is too small.”