The government just created
an investment account
for your child.
New legislation establishes tax-advantaged savings accounts for every American child under 18 — including a free $1,000 government seed for qualifying newborns. KCM helps you claim what’s yours and grow it right.
What Are These Accounts?
Congress created a new category of tax-advantaged savings account designed specifically for children. Think of it as a hybrid between a Roth IRA and a 529 plan — but with no income limits, no earned-income requirement, and a free $1,000 head start from the federal government for newborns born 2025–2028.
Free $1,000 Government Seed Money
Children born between January 1, 2025 and December 31, 2028 who are U.S. citizens with a Social Security number receive a one-time $1,000 government deposit — automatically, once an account is established.
Claim via IRS Form 454718 Years of Tax-Deferred Growth
Funds invest in U.S. stock index funds and compound tax-deferred until age 18. At 18, the account converts to a traditional IRA. Withdrawals can fund qualified education costs, a first home, or retirement.
Flexible Family Contributions
Parents, grandparents, and family members can contribute up to $5,000/year. Employers can contribute up to $2,500/year — tax-free to the employee. No earned income required for the child.
What Could This Actually Grow Into?
The free $1,000 is just the seed. The real story is 18 years of compounding in a U.S. index fund. Toggle any scenario to see the trajectory for a child born today.
Illustrative projection at 7% average annual return, starting from birth with $1,000 government seed. Actual returns will vary. Not a guarantee of future results. Past S&P 500 performance does not predict future outcomes.
Free Planning Worksheet
Want to run the numbers for your specific situation before booking a call? KCM’s free interactive worksheet walks you through eligibility, growth projections, and setup steps personalized to your family.
Children’s Savings Account Planning Worksheet
Four built-in calculators to help you personalize this decision for your family. Takes about 10 minutes. No spreadsheet required.
- Growth projection calculator — personalized to your child’s age and contribution level
- Eligibility quick-check — seed money, Dell grant, employer match
- Setup complexity estimator with prioritized next steps
- Side-by-side comparison vs. 529 plan, UGMA, and Roth IRA
Ready to Open Your Child’s Account the Right Way?
A free 30-minute consultation covers everything: eligibility, setup steps, contribution strategy, and how this fits into your family’s broader financial plan.