Overview
- Announced at the White House, the pledge adds $250 to investment accounts for children who missed the federal newborn window, expanding coverage beyond babies born 2025–2028.
- Eligibility focuses on kids age 10 and under born before 2025 in ZIP codes with median household income under $150,000, with older children considered if funds remain.
- Separately, the law provides a $1,000 government deposit for each child born from 2025 through 2028, with funds limited to low-cost index investments and inaccessible until age 18 before converting to IRA-style accounts.
- Parents can open accounts starting July 4, 2026 using IRS Form 4547 or online, and the Treasury Department will credit the Dell-funded $250 deposits to eligible accounts.
- Unresolved issues include which financial agents will manage assets, detailed tax treatment of withdrawals, and whether enrollment will be automatic; private contributions up to $5,000 a year and employer deposits up to $2,500 are allowed.