401Kids Savings Account Act of 2024

Where This Stands

Introduced

Committee

Floor Vote

Passed

Signed

Currently IN_COMMITTEE. The next step in the legislative lifecycle is Floor Vote.

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

The Frame

What this does

The bill establishes a new federal financial asset for every U.S. child, providing up to $750 in annual government deposits for eligible families, which are excluded from means-tested benefit calculations up to $100,000.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

U.S. citizen children under 18

They are the designated beneficiaries of the savings accounts.

Parents and guardians

They may make contributions and receive matching funds if eligible for the EITC.

State governments

States may choose to establish and maintain their own 401Kids programs or have the federal government manage them.

Foster care youth

They are eligible for a $750 annual deposit regardless of parental tax filing status.

What changed

Current stage: IN_COMMITTEE.

What's next

Floor Vote.

Summary

This bill creates a national system of government-funded savings accounts for children, providing annual deposits and matching contributions to help families save for education, small business loans, and home ownership. The program would be managed by states or, if a state does not participate, by the federal government.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Why It Matters

The bill establishes a new federal financial asset for every U.S. child, providing up to $750 in annual government deposits for eligible families, which are excluded from means-tested benefit calculations up to $100,000.

Frequently Asked Questions

Who is eligible for a 401Kids account?

Any U.S. citizen child under the age of 18.

What happens to the money if the child dies before 18?

Federal deposits and gains are returned to the Treasury, while other contributions are withdrawn by the successor owner.

Can I use this money for anything?

No, funds must be used for qualified expenses like education, small business loans, or home buying to avoid a 10% tax penalty.

Does this affect my eligibility for other government benefits?

Generally no, as account funds are disregarded for means-tested programs up to a $100,000 balance.

News Coverage

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Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Integration of 529 and Roth IRA structures

The bill creates a novel bridge between education savings (529s), disability savings (ABLE), and retirement savings (Roth IRAs) for children.

Department of the Treasury

Connected Entities

organizationSecretary“The Secretary of the Treasury.”Map →

locationState“States are responsible for establishing and administering the accounts.”Map →

personBlumenauer, Mr.“Co-sponsor of the bill in the House of Representatives.”Map →

personSanchez, Mr.“Co-sponsor of the bill in the House of Representatives.”Map →

personDelBene, Ms.“Co-sponsor of the bill in the House of Representatives.”Map →

personKamlager-Dove, Ms.“Co-sponsor of the bill in the House of Representatives.”Map →

personThanedar, Mr.“Co-sponsor of the bill in the House of Representatives.”Map →

bill_numberInternal Revenue Code of 1986“The law being amended.”Map →

personDavis of Illinois, Mr.“Co-sponsor of the bill in the House of Representatives.”Map →

personNorton, Ms.“Co-sponsor of the bill in the House of Representatives.”Map →

personBeatty, Mrs.“Co-sponsor of the bill in the House of Representatives.”Map →

personBeyer, Mr.“Lead sponsor of the bill in the House of Representatives.”Map →

Analysis Score

0–100

Significance85
How much this matters to a regular citizen
Controversy40
Intensity of disagreement among stakeholders
Entertainment10
Compellingness for a non-policy-wonk reader
Buzz30
Current news / social attention level