arrow_back Back to App

Automatic 401Kids Savings Accounts for Children with Government Contributions

This bill establishes automatic lifetime savings accounts (401Kids) for children who are U.S. citizens, designed to fund goals like education, first home purchase, or starting a small business after age 18. The government will make annual deposits into these accounts (generally $500), with higher amounts and matching funds available for EITC-eligible families. These savings, up to a certain limit, will not count against asset limits for federal means-tested assistance programs.
Key points
Every eligible child (U.S. citizen under 18) receives a 401Kids account, with the government generally depositing $500 annually (subject to income phaseouts).
Families eligible for the EITC receive higher annual deposits ($750) plus matching contributions of up to $250 for parental deposits.
Funds can be withdrawn tax-free after age 18 for qualified expenses, including education, buying a first home, or small business loans.
Savings in the account (up to $100,000) will not affect eligibility for federal means-tested benefits.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_7162
Sponsor: Rep. Beyer, Donald S., Jr. [D-VA-8]
Process start date: 2024-01-31
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-3-pro-preview
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

401Kids Savings Account Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_7162.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-01-31.

What are the main provisions?

Key points include:

  • Every eligible child (U.S. citizen under 18) receives a 401Kids account, with the government generally depositing $500 annually (subject to income phaseouts).
  • Families eligible for the EITC receive higher annual deposits ($750) plus matching contributions of up to $250 for parental deposits.
  • Funds can be withdrawn tax-free after age 18 for qualified expenses, including education, buying a first home, or small business loans.
  • Savings in the account (up to $100,000) will not affect eligibility for federal means-tested benefits.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Beyer, Donald S., Jr. [D-VA-8].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Work and Welfare.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-30.

CATEGORIES

Taxes Benefits Family