Overview
- Parents must provide a responsible party’s details and each child’s Social Security number to register eligible minors under 18.
- Filers can elect a one-time $1,000 federal seed for children born 2025–2028, and some children may also receive an additional $250 from private donations.
- Contributions cannot begin until July 4, 2026, and non-federal contributions are capped at $5,000 per year per child.
- Employers may contribute up to $2,500 tax-free per employee each year under IRC Section 128, and cafeteria plans can allow pre-tax employee payroll contributions.
- Investments are limited to low-cost U.S. equity index funds during the growth period and the accounts generally follow traditional IRA rules at adulthood with qualified access at 18.