Overview
- Under the law, the Treasury will deposit $1,000 into a tax-advantaged account for each child born from Jan. 1, 2025 through Dec. 31, 2028, with accounts held in the child’s name and a parent or guardian as custodian.
- Funds must be invested in low-cost index funds, withdrawals are generally locked until age 18, and the accounts then operate under IRA-style rules with penalty-free exceptions for uses such as education and a first-home purchase.
- Families may contribute up to $5,000 per child annually, employers can add up to $2,500 toward that cap, and certain government and nonprofit contributions do not count against the limit.
- JPMorgan Chase and Bank of America announced $1,000 matches for eligible employees’ children, joining broader corporate and celebrity support that includes Michael and Susan Dell’s $6.25 billion pledge and targeted donations from Ray Dalio and Nicki Minaj.
- The administration is urging sign-ups via Form 4547 during tax season, says an online portal is expected by summer 2026, and acknowledges some rules are still being finalized as critics question who will benefit most and the program’s short-term affordability impact.