401Kids Savings Account Act of 2024

This bill would create "401Kids Savings Accounts" for every U.S. citizen child under 18, automatically established at birth or naturalization (including children in foster care). The accounts would receive annual government deposits of $500 (or $750 for families receiving the Earned Income Tax Credit), with an additional matching contribution of up to $250 for EITC-eligible families. Account funds could be used for qualified education expenses, home purchases, or rolled into ABLE accounts or Roth IRAs after age 18, with funds generally disregarded for means-tested federal benefits. The program would be administered through either state programs (with federal certification requirements) or a new Federal program established by the Treasury Department. Contributions would be limited to $2,500 per year (excluding government deposits), and the bill includes specific provisions for handling accounts of children in foster care and for deceased account holders.