All questions should be answered by reading the AR1000F and AR1000NR Instructions. Page 10 describes withdrawals and there is no place for spreading payments. It is not allowed in AR.
Some states begin with the federal AGI and make adjustments. AR does not do that. AR has state specific income so it starts from scratch, not the federal.
Since AR has taxed the money once already, you would have the taxed portion as a basis to not be taxed in the future. Keep track of all records, the taxation, and the repayment to be able to prove later.
While there may be a house bill suggesting changes, it is not in the 2021 instructions for preparing your tax forms. The state can change the laws at any time and make them retroactive going back to 2020 or farther. In which case, you could amend your tax returns.
I hope this helps!
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