These tax-deferred investment accounts, created under IRC §530A, allow parents or guardians to open one for any child under 18 with a Social Security number. Eligible children born 2025–2028 receive a one-time $1,000 federal seed contribution, invested in low-cost U.S. stock index funds. Families, employers, and donors can add up to $5,000 annually.
Funds grow tax-deferred until age 18, then convert to a traditional IRA. The program aims to build long-term wealth, introduce investing habits, and give every child—especially those from lower-income families—a tangible stake in the U.S. economy from childhood.
