Overview
- Notice 2025-68 outlines how the child-focused accounts will operate, with public comments due by February 20, 2026 and a draft IRS Form 4547 available to elect and open accounts.
- Michael and Susan Dell pledged $6.25 billion to provide roughly $250 per child for about 25 million kids in designated ZIP codes with median household income at or below $150,000.
- The federal pilot deposits $1,000 for eligible births from 2025 through 2028, with accounts to be opened via Form 4547 or a Treasury portal expected to go live in mid‑2026.
- During the growth period, funds must be held in low-cost U.S. equity index funds with fees capped near 0.1%, no distributions are allowed before age 18, and private contributions are capped at $5,000 per child per year with employer contributions limited to $2,500; contributions may begin July 4, 2026.
- Employer participation rules remain in development, including ERISA treatment and coordination with Section 125 cafeteria plans under new Code Section 128, as regulators finalize operational guidance.