Overview
- The federal program seeds $1,000 for each U.S. citizen baby born from Jan. 1, 2025 through Dec. 31, 2028, with funds invested in low‑cost diversified index funds and accessible at age 18 for education, a first‑home purchase, or starting a business.
- The Dell gift provides $250 to children age 10 or younger in ZIP codes with median family income at or below $150,000 who are not eligible for the Treasury seed, with distribution coordinated through the federal account infrastructure and Invest America.
- Accounts open for contributions on July 4, 2026; parents can pre‑register via IRS Form 4547, and Treasury plans to contact registrants in May 2026 to complete account setup.
- Families and others can contribute up to $5,000 per child annually starting in 2026, with employers allowed up to $2,500 of that total, and growth is generally tax‑deferred until withdrawal; government and charitable contributions may be treated differently from the cap.
- Experts note the accounts build long‑term assets but will not reduce child poverty immediately, and they highlight concurrent cuts to Medicaid, food assistance and childcare in the same fiscal package.