A new federal program gives eligible children a $1,000 starter deposit automatically invested in index funds. Parents open accounts with IRS Form 4547. Since 2026, about 6 million children have enrolled, with annual contributions capped at $5,000.
A new federal program starts investment accounts for eligible children with a starter deposit. The starter amount is $1,000 invested in low-cost index funds tied to the stock market. In 2026, contributions are generally capped at $5,000 a year, and family or friends can add money. Since contributions began in 2026, about 6 million children have been enrolled. Parents and guardians can set up an account and request the $1,000 using IRS Form 4547.
