After bringing home your newborn, school may seem like a discussion to be had years down the line, but before you know it, diapers, formula and toys will turn into school uniforms, dorm decorations and tuition. Whether you’re a parent stressing over the cost of education for your children or just readying yourself for the near future, the first-of-its-kind Arkansas 529 app will bring peace to your financial worries all in the palm of your hand.

But, how do you get started? We asked the experts at the Arkansas State Treasurer's Office, which administers the Arkansas 529 program, for their tips on turning your little bundle of joy into a little scholar in the making!

Plan Ahead

No one can look into the future, but it's always best to prepare for it! The cost of education is constantly rising. Plan ahead and ensure that your little one will one day have the gift of education. Arkansas 529 plans can be used for K-12 or post-secondary education, so it’s all about where you want your money to go.

Some parents have other priorities and saving for private school or college can easily get placed on the back burner, but the Arkansas 529 app can make saving early easy and can make a huge difference in the money you contribute over time.

Know the Tax Breaks

Money invested in Arkansas 529 plans grows tax-free, and once your child reaches a certain age, withdrawals for qualified education expenses are free from federal income tax. That way, more of your savings go toward paying for school and not taxes!

Arkansas taxpayers can deduct up to $5,000 (up to $10,000 for married couples) of Arkansas 529 plan contributions from their adjusted gross incomes on their state income taxes.

Be Flexible

529 plans can be used to pay for everything from tuition and books, to laptops and specialized equipment. Arkansas 529 investment funds can also be used for almost any kind of K-12 or post-secondary education; so if community college, a certificate program or trade school becomes the route your child decides to take, your money won’t go unused. If your child receives a scholarship and no longer needs the investment fund or decides not to go to college, the beneficiary of the plan can easily be changed to another one of your children. It’s a win-win!

Get the 529 App

The new Arkansas 529 app gives account holders the ability to check their account balance, transaction history and stay in the know about their accounts with deposit, security and news alerts. While the app is currently in its first phase, its next phase will have the full-functionality of a mobile banking app, allowing Arkansans to open up new accounts, make deposits and withdrawals.

“While we as administrators of state-run 529 plans can’t do anything about tuition costs, we can encourage Arkansans to start saving and we can increase awareness on how account holders can start saving now,” said Dennis Milligan, Arkansas Treasurer of State.

The goal of the app is to keep account owners up to date and offer them unique ideas on how they can increase their deposits, encourage them to set 529 account goals and assist them in reaching their goals.

With tuition costs rising and the U.S. student loan debt total reaching the trillion-dollar mark, the Arkansas 529 app is giving Arkansans hope as they prepare for freshman move-in day — even if it is 18 years down the line.

A Head Start
by Dennis Milligan, Arkansas Treasurer

For me, being their Pops isn’t just about Saturday morning donuts and fun trips with my three grandchildren. It’s about helping them get a head start on a solid foundation for their education.

Like most grandparents, I want my grandchildren to have all the necessary tools they need to succeed. As Arkansas Treasurer of State and a grandfather, my passion for education and my love for my grandchildren led me to open Arkansas 529 College Investing Plans for each one of them.  These plans were designed to be flexible for parents and loved ones to set goals on saving for their child’s or relative’s education.

These accounts are a win-win for parents and grandparents like me. Not only am I paving the way for my grandchildren’s educational success, I’m also receiving a state tax deduction. Why not help your children succeed and pay less taxes?