Bill > HR7162

This bill, the 401Kids Savings Account Act of 2024, aims to create a system of lifetime savings accounts for children. The key provisions are: 1. Allowing qualified tuition programs (529 plans) to include "401Kids Account Programs" that establish a savings account for every eligible child (a U.S. citizen under age 18) at birth or naturalization. These accounts must meet certain requirements, such as permitting contributions up to $2,500 per year (with annual inflation adjustments) and allowing distributions for qualified expenses like small business loans, home purchases, and higher education. 2. Establishing a federal "Federal 401Kids Account Program" to create and maintain savings accounts for children in states that do not establish their own 401Kids Account Program. This federal program would make annual deposits of $500-$750 into these accounts, with additional matching contributions for families eligible for the Earned Income Tax Credit. 3. Ensuring the funds in these 401Kids accounts are disregarded for purposes of determining eligibility for certain federal means-tested programs, except for distributions for home purchases. 4. Authorizing data sharing between federal agencies and the use of Social Security numbers to establish and maintain these 401Kids accounts. 5. Appropriating funds for the implementation, administration, and contributions to the federal and state 401Kids account programs. Overall, the bill aims to help build savings and assets for children from birth, with the goal of improving financial security and access to opportunities like higher education, home ownership, and small business development.

Budget and Finance

https://www.congress.gov/bill/118th-congress/house-bill/7162/all-info