Arkansas Administrative Code Agency 202 - Section 529 Plan Review Committee
Here’s an overview of Agency 202 – Section 529 Plan Review Committee as outlined in the Arkansas Administrative Code:
🏛️ Overview & Authority
Agency 202 – Section 529 Plan Review Committee operates under Ark. Admin. Rules 202.00.08-001, current through March 2025 (regulations.justia.com).
It derives its authority from the Arkansas Tax-Deferred Tuition Savings Program Act (Ark. Code Ann. § 6‑84‑101 et seq.), and ensures that the state's 529 college savings plan complies with both Arkansas law and Section 529 of the Internal Revenue Code (regulations.justia.com).
Key Functions of the Committee
1. Rulemaking & Compliance
The Committee establishes, updates, and modifies rules governing the program to align with federal and state requirements. If a conflict arises, federal Section 529 provisions take precedence .
2. Portfolio Management
It oversees available investment options—such as Age‑Based Options, Year‑of‑Enrollment Portfolios, Custom Portfolios, and others—approving or adjusting allocations, creating or terminating portfolios, and maintaining periodic rebalancing (regulations.justia.com).
3. Fees & Funds
The Committee may set an Arkansas Administration Fee, design account application requirements, establish contribution limits based on projected education costs, and manage the program’s operating and investment funds (regulations.justia.com).
4. Beneficiary Changes & Rollovers
It has discretion to approve or reject changes in designated beneficiaries—especially when accounts are age-based—and sets policy around rollovers to/from other qualified programs (arkleg.state.ar.us).
Definitions & Structure
Committee: Defined under Ark. Code Ann. § 6‑84‑105 as the Section 529 Plan Review Committee (sos.arkansas.gov).
Trust Structure: Includes both an Investment Fund (with multiple portfolios) and an Operating Fund (sos.arkansas.gov).
Portfolios: Varying structures (by age, enrollment year, or custom options). Each is approved, managed, and rebalanced under Committee oversight (regulations.justia.com).
Summary Table
Category
Description
Authority
Ark. Tax-Deferred Tuition Savings Act; federal Section 529 compliance
Rulemaking
Establishes and updates program rules
Portfolios
Manages structure and investments (e.g., age-based, year-of-enrollment)
Funds & Fees
Sets contribution limits, administration fees, manages funds
Beneficiary/Rollover Policies
Governs changes in beneficiaries and rollovers
Practical Considerations
Statute vs. Rule: The Committee operates under both state statute (Ark. Code Ann. § 6‑84‑101 et seq.) and administrative code (Rule 202.00.08‑001).
Flexibility: It can continually update portfolios, reallocate assets, and revise processes to stay current with changes in federal laws.
Compliance Role: Ensures the Arkansas program retains its qualified status under IRC Section 529.
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