The winner of a $529 Arkansas Gift College Savings Plan for Logan County is Chase Posey of Booneville.
Titled the “Coloring for College” the contest was sponsored by the Arkansas 529 Gift College Investing Plan, the Arkansas State Treasury and the Arkansas Department of Education.
Beth Anne Rankin, the executive director of the Arkansas 529 Gift College Investing Plan was in Booneville in late September promoting the contest.
Karen Posey learned her son’s coloring picture, of himself and a friend fishing in a boat, was selected for Logan County in the statewide initiative in which $529 will be deposited into a college savings account.
According to its website, “529 plans were established to help parents and grandparents save money for college. In fact, the name ‘529’ refers to the Internal Revenue Code section that discusses this type of college savings tool.
“While there are other types of college saving vehicles, 529 plans offer several features that can help families keep pace with the rising cost of a college degree.”
The website adds, “once a child reaches college age, withdrawals for qualified higher education expenses are free from federal income tax. That way, more of your savings goes toward paying for college rather than taxes.”
Parents can contribute up to $14,000, or up to $28,000 for married couples, per designated beneficiary each year, without incurring federal gift tax consequences. You can even contribute up to $70,000 per designated beneficiary in a single year, up to $140,000 for married couples by taking advantage of five years’ worth of federal tax-free gifts at one time.
Additionally Arkansas taxpayers can deduct up to $5,000, up to $10,000 for married couples, of Arkansas 529 GIFT Plan contributions from their Arkansas adjusted gross income.
To learn more about AR 529 Gift plan visit https://www.arkansas529.org/ or contact Rankin at Bethanne.email@example.com or call (501) 682-3817.