# Ark. Code Ann. § 26-51-414: Deferred compensation plans

> Arkansas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-414

## Section

- **Citation:** Ark. Code Ann. § 26-51-414
- **Heading:** Deferred compensation plans
- **Jurisdiction:** Arkansas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** AR Code / Title 26 / Chapter 51 / Subchapter 4 / Section 26-51-414

## Text

(a) (1) The following sections relating to annuities, retirement savings, and employee benefit plans are adopted for the purpose of computing Arkansas income tax liability, except Arkansas capital gains treatment and the Arkansas tax rates shall apply: (A) Title 26 U.S.C. §§ 72 , 219 , 402 - 404 , 406 - 416 , and 457 , as in effect on January 1, 2017; and (B) Title 26 U.S.C. § 401 , as in effect on March 30, 2010. (2) The requirements for filing a joint return under 26 U.S.C. § 219(c)(1)(A) shall not apply. (b) Title 26 U.S.C. § 408A as in effect on January 1, 2010, relating to Roth individual retirement accounts, is adopted for the purpose of computing Arkansas income tax liability, except with regard to adjusted gross income under 26 U.S.C. § 408A(c)(3) , which shall be determined in the same manner as under § 26-51-403(b) . (c) Any additional tax or penalty imposed by this section shall be ten percent (10%) of the amount of any additional tax or penalty provided in the federal income tax law adopted by this section. (d) Title 26 U.S.C. § 1042 , as in effect on January 1, 2003, regarding the deferral of gain realized on the sale of a corporation's shares of stock to the corporation's employee stock ownership plan (ESOP), is adopted for the purpose of computing Arkansas income tax liability. Amended by Act 2017, No. 884,§ 17, eff. 8/1/2017. Amended by Act 2017, No. 155,§ 18, eff. for tax years beginning on and after 1/1/2015. Amended by Act 2015, No. 580,§ 16, eff. for tax years beginning on or after January 1, 2014. Amended by Act 2013, No. 1254,§ 6, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012. Acts 1959, No. 202, § 2; 1983, No. 379, § 13; 1986 (2nd Ex. Sess.), No. 20, § 1; A.S.A. 1947, § 84-2049; Acts 1987, No. 382, § 27; 1987 (1st Ex. Sess.), No. 48, § 2; 1989, No. 826, § 24; 1991, No. 685, § 4; 1995, No. 1160, § 6; 1997, No. 951, § 2; 1999, No. 144, § 1; 1999, No. 513, § 1; 2003, No. 218, § 1; 2003, No. 663, § 8; 2005, No. 94, § 4; 2007, No. 218, § 21; 2009, No. 372, § 12; 2011, No. 787, §§ 16, 17.

(a) (1) The following sections relating to annuities, retirement savings, and employee benefit plans are adopted for the purpose of computing Arkansas income tax liability, except Arkansas capital gains treatment and the Arkansas tax rates shall apply: (A) Title 26 U.S.C. §§ 72 , 219 , 402 - 404 , 406 - 416 , and 457 , as in effect on January 1, 2017; and (B) Title 26 U.S.C. § 401 , as in effect on March 30, 2010. (2) The requirements for filing a joint return under 26 U.S.C. § 219(c)(1)(A) shall not apply.

(1) The following sections relating to annuities, retirement savings, and employee benefit plans are adopted for the purpose of computing Arkansas income tax liability, except Arkansas capital gains treatment and the Arkansas tax rates shall apply: (A) Title 26 U.S.C. §§ 72 , 219 , 402 - 404 , 406 - 416 , and 457 , as in effect on January 1, 2017; and (B) Title 26 U.S.C. § 401 , as in effect on March 30, 2010.

(A) Title 26 U.S.C. §§ 72 , 219 , 402 - 404 , 406 - 416 , and 457 , as in effect on January 1, 2017; and

(B) Title 26 U.S.C. § 401 , as in effect on March 30, 2010.

(2) The requirements for filing a joint return under 26 U.S.C. § 219(c)(1)(A) shall not apply.

(b) Title 26 U.S.C. § 408A as in effect on January 1, 2010, relating to Roth individual retirement accounts, is adopted for the purpose of computing Arkansas income tax liability, except with regard to adjusted gross income under 26 U.S.C. § 408A(c)(3) , which shall be determined in the same manner as under § 26-51-403(b) .

(c) Any additional tax or penalty imposed by this section shall be ten percent (10%) of the amount of any additional tax or penalty provided in the federal income tax law adopted by this section.
r the purpose of computing Arkansas income tax liability, except with regard to adjusted gross income under 26 U.S.C. § 408A(c)(3) , which shall be determined in the same manner as under § 26-51-403(b) .

(c) Any additional tax or penalty imposed by this section shall be ten percent (10%) of the amount of any additional tax or penalty provided in the federal income tax law adopted by this section.

(d) Title 26 U.S.C. § 1042 , as in effect on January 1, 2003, regarding the deferral of gain realized on the sale of a corporation's shares of stock to the corporation's employee stock ownership plan (ESOP), is adopted for the purpose of computing Arkansas income tax liability.

Amended by Act 2017, No. 884,§ 17, eff. 8/1/2017.

Amended by Act 2017, No. 155,§ 18, eff. for tax years beginning on and after 1/1/2015.

Amended by Act 2015, No. 580,§ 16, eff. for tax years beginning on or after January 1, 2014.

Amended by Act 2013, No. 1254,§ 6, eff. 8/16/2013, op. retroactively to tax years beginning on or after 1/1/2012.

Acts 1959, No. 202, § 2; 1983, No. 379, § 13; 1986 (2nd Ex. Sess.), No. 20, § 1; A.S.A. 1947, § 84-2049; Acts 1987, No. 382, § 27; 1987 (1st Ex. Sess.), No. 48, § 2; 1989, No. 826, § 24; 1991, No. 685, § 4; 1995, No. 1160, § 6; 1997, No. 951, § 2; 1999, No. 144, § 1; 1999, No. 513, § 1; 2003, No. 218, § 1; 2003, No. 663, § 8; 2005, No. 94, § 4; 2007, No. 218, § 21; 2009, No. 372, § 12; 2011, No. 787, §§ 16, 17.

## Nearby sections

- [Ark. Code Ann. § 26-51-401 Tax year - Accounting method](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-401.md)
- [Ark. Code Ann. § 26-51-402 Tax year - Basis for determining liability](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-402.md)
- [Ark. Code Ann. § 26-51-403 Income generally](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-403.md)
- [Ark. Code Ann. § 26-51-404 Gross income generally](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-404.md)
- [Ark. Code Ann. § 26-51-405 Partnership income](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-405.md)
- [Ark. Code Ann. § 26-51-406 Income to beneficiaries of trusts and estates](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-406.md)
- [Ark. Code Ann. § 26-51-407 Financial institutions](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-407.md)
- [Ark. Code Ann. § 26-51-408 Dividends of financial institutions taxable](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-408.md)
- [Ark. Code Ann. § 26-51-409 Federal Subchapter S adopted](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-409.md)
- [Ark. Code Ann. § 26-51-410 Inventory](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-410.md)
- [Ark. Code Ann. § 26-51-411 Gain or loss - Sale of property](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-411.md)
- [Ark. Code Ann. § 26-51-412 Gain or loss - Exchange of property](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-412.md)
- [Ark. Code Ann. § 26-51-413 Corporate liquidations](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-413.md)
- [Ark. Code Ann. § 26-51-414 Deferred compensation plans](https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-414.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AR_T26_C51_S4_S26-51-414. Check the current official text before relying on it. Not legal advice.