Overview
- Parents of eligible children can claim the one-time $1,000 federal seed now using IRS Tax Form 4547.
- An official online enrollment portal is scheduled to launch on July 5, 2026, when contributions will begin to be accepted.
- Eligibility limits one account to each U.S. citizen under age 18, with the $1,000 seed available for births from Jan. 1, 2025 through Dec. 31, 2028.
- Annual limits allow custodian contributions of $5,000 in 2026 and 2027, with employer contributions up to $2,500 per employee each year and inflation indexing starting in 2028.
- Accounts take after-tax contributions, restrict investments to low-cost, non‑leveraged U.S. stock index funds, and follow IRA distribution rules after age 18, as a House bill (H.R. 7737) seeking broader investment options awaits action.