Summary
The 401Kids Savings Act would create savings accounts for all newborns. Low- and moderate- income families would receive federal contributions. Children in households that qualify for the earned income tax credit would receive additional aid. Children's savings accounts are currently available statewide in seven states.
The 401Kids proposal calls for children to only have access to the funds once they turn 18. The money would have to be used for education, training, a home purchase or to start a business. The funds could also be rolled over to a Roth individual retirement account or ABLE account for children with disabilities.
