# Summary: 401Kids Savings Account Act of 2024
This bill creates automatic savings accounts for children from birth through age 17, funded through a combination of federal deposits and family contributions. The federal government would deposit $500 annually into each account for most families, increasing to $750 for families receiving the earned income tax credit, plus matching contributions up to $250 for eligible low-income families. Families can also contribute up to $2,500 per year to the accounts. Starting at age 18, account holders can withdraw funds for qualified expenses including higher education, home purchases, small business loans, or trade certificates, or roll the funds into a Roth IRA or ABLE account. States can establish their own programs, or families in non-participating states would use a federal program managed by the Treasury Department. The bill appropriates $100 million for implementation, $30 million annually for administration, and additional unspecified funds for federal contributions. Account balances would not count against eligibility for federal means-tested benefits like Medicaid, except when balances exceed $100,000. The Treasury Department must establish the federal program by December 31, 2024.
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