Overview
- Children born from January 1, 2025, through December 31, 2028, qualify for a one‑time $1,000 Treasury deposit, with parents allowed up to $5,000 in annual contributions and employers up to $2,500 within that cap.
- Accounts are opened via the new IRS Form 4547 during tax filing or through a federal portal expected this summer, with contributions and investing slated to begin in July 2026.
- Funds must be placed in low‑cost diversified index products, balances are generally locked until the calendar year the child turns 18, earnings grow tax‑deferred, and withdrawals are taxed as ordinary income.
- Major employers and donors have announced matches or deposits, including pledges from JPMorgan, Bank of America, Broadcom, Intel, Dell, Comcast, Nvidia, Uber, Visa rewards conversions, and state‑focused gifts like Brad Gerstner’s Indiana pledge.
- Newsweek reports a dispute over Michael and Susan Dell’s $6.25 billion pledge, with the White House saying the $250 is on top of the $1,000 seed while the Dells’ terms target children born 2016–2024 who are ineligible for the federal deposit; economists also cite CBO findings on broader law changes and warn the design could widen inequality.