Overview
- Children born in 2025–2028 who are U.S. citizens with Social Security numbers qualify for the pilot program, provided no prior pilot election was processed for them.
- Parents or other authorized individuals must elect an account using Form 4547 with a tax return or through an IRS portal by December 31 of the year the child turns 17, with the opener designated as the responsible party.
- A one-time $1,000 Treasury deposit can be elected at account opening; if not, the proposed priority to request it is legal guardian, parent, adult sibling, then grandparent.
- Investments are limited to low-cost, U.S. equity index mutual funds or ETFs, and withdrawals are generally barred until the calendar year the beneficiary turns 18, after which IRA-like tax rules apply.
- Agencies will take public comments before finalizing guidance, with contributions and deposits not permitted before July 4, 2026; the annual contribution cap is $5,000, including up to $2,500 from employers excluded from taxable income.