Overview
- The program seeds $1,000 into tax-advantaged investment accounts for children born from 2025 through 2028, requires low-cost index fund investments, restricts withdrawals until age 18, and then converts to an IRA-like account.
- Enrollment is made via IRS Form 4547, now available during tax filing, with an online portal expected by mid-2026, according to Treasury guidance.
- Families may add up to $5,000 per child annually, with employers permitted to contribute up to $2,500 of that cap; government and qualified nonprofit donations can be exempt from the limit.
- JPMorgan Chase and Bank of America announced $1,000 matches for eligible employees’ children, joining pledges from firms such as Intel, Broadcom, Charles Schwab, BlackRock, BNY, Robinhood and SoFi, while Michael and Susan Dell committed $6.25 billion and other donors, including Ray Dalio and Nicki Minaj, pledged targeted support.
- The administration says accounts are expected to activate in early July 2026, and while officials project growth from the $1,000 seed (roughly $5,800 by age 18 if untouched), economists caution the largest gains will favor families able to make sustained contributions.