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2017 Arkansas Code
Title 20 - Public Health and Welfare
Subtitle 1 - General Provisions
Chapter 3 - Achieving a Better Life Experience Program Act
§ 20-3-111. Funds exempt from tax
Universal Citation: AR Code § 20-3-111 (2017)
- (a) Except as otherwise indicated in this chapter, interest, dividends, and capital gains from funds invested in the Achieving a Better Life Experience Program are exempt from Arkansas income taxes.
- (b)
- (1) A qualified distribution from a disability savings account established under the program is exempt from Arkansas income tax with respect to the designated beneficiary's income.
- (2)
- (A) Nonqualified distributions from a disability savings account established under the program are subject to Arkansas income tax.
- (B) The nonqualified distribution is taxable to the party, account owner, or designated beneficiary who actually makes the withdrawal.
- (c) Earnings on a contribution that are included in a refund are subject to Arkansas income tax if an account owner receives a refund of contributions to a disability savings account established under the program because of either:
- (1) The death or disability of the designated beneficiary; or
- (2) A scholarship, allowance, or payment described in 26 U.S.C. § 135(d)(1)(B) or (d)(1)(C) as in effect on January 1, 2014, received by the designated beneficiary.
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