HALTER WILL ESTABLISH A ‘529-PLUS’ PLAN
New ‘Arkansas Excellence Plan’ Program Offers a Matching-Grant to
Help Parents Invest in their Child’s Education

 

North Little Rock – Unveiling the latest plank of his Arkansas Excellence Plan, Democratic candidate for Governor Bill Halter today introduced a new “529-PLUS” program which will provide matching grants for many Arkansas parents who are planning and saving for a child’s future higher-education.

 

When implemented, Halter’s 529-PLUS program would be one of the nation’s most beneficial 529 college savings plans.  Currently, seven other states -- Louisiana, Colorado, Utah, Rhode Island, Minnesota, Michigan, Maine -- have a fully-operational 529 plan with a matching component.  None of those states offer a matching grant as rewarding as Halter’s program will offer.  The cost of the plan would be $575,000 per year.

 

Currently, the state’s 529 Plan allows Arkansans to open a tax-deferred investment account – similar to a 401K or an IRA – to save for a Arkansas college education.  The 529 also allows up to a $5,000 tax deduction dependent upon how much money is deposited into an account by the participant.  But it does not offer a matching grant.

 

“A matching-grant will offer many Arkansas families the ability to make a sound investment into a child’s future higher-education,” remarked Halter.  “Some families will receive three dollars matching grant for every one dollar they save.  That’s a pretty good opportunity to help folks achieve the dream of seeing their children or grandchildren achieve a higher-education and go on to lead a more prosperous life.”

 

 

Bill Halter’s 529-PLUS Plan takes the state’s current 529 college savings plan and creates an inclusive matching grant to low and middle income individuals.

 

The 529-PLUS program provides a new matching grant to low and middle income families to save for a future college education.  The amount of the matching grant is dependent upon a family’s income.

 

The plan provides the following match schedule based upon an investment of $500:

 

Household Income                 match amount             maximum match each year

 

$40,001 - $60,000                   1:1                                                       $500
$20,001 - $40,000                   2:1                                                       $1000
$20,000 and below                  3:1                                                       $1500