A small step today can grow into a lifetime of opportunity.
Future Funds is a student-led initiative helping families understand federal child savings accounts. Clear guides, official resources, and thoughtful illustrations turn a complex program into an informed first step.
Understand the two eligibility tests.
Opening an account and qualifying for the federal deposit are different. Check both before you begin.
How the account works
From the initial election to the transition into adulthood: four stages to understand.
Open the account
An authorized adult completes the IRS election for an eligible child, then follows the account activation instructions. Future Funds explains the process; we do not open or manage accounts.
Request the federal deposit
Eligible U.S. citizens born in 2025–2028 may receive a one-time $1,000 deposit. It requires a separate election; opening an account alone does not request it.
Contribute & grow
Family and employer contributions generally share a $5,000 annual limit per child. Eligible low-cost U.S. stock index funds can gain or lose value. This illustration assumes $1,000 initially, $100 monthly for 18 years, and a hypothetical 6% annual return.
Turn 18
Starting January 1 of the year the child turns 18, most ordinary traditional IRA rules apply. A withdrawal is not automatically tax-free or penalty-free; the beneficiary should understand the rules before using the funds.
See what your family's account could grow into
Explore a hypothetical scenario, not a forecast. Change the assumptions to see how the result changes.
Include it only if the child qualifies. This model treats it as an initial balance, not a deposit received at birth.
The potential of consistent contributions
Three hypothetical examples using a fixed 6% annual return. These are illustrations, not expected outcomes.
Each example starts with $1,000 at age 0. Additional contributions, where shown, arrive at each year's end for 18 years and then stop. The balance remains invested afterward. Taxes, fees, inflation, withdrawals, and actual deposit timing are excluded. Returns are not guaranteed and losses are possible.
One guide for every role
Pick the guide that matches you.
For Kids
A simple explainer, written for ages 8–13.
Read the guideFor Parents
Eligibility, contributions, tax considerations, and comparisons with a 529 plan.
Read the guideFor Employers
Employer contribution rules and matching programs.
Read the guideFor Donors
How nonprofits and donors can fund accounts at scale.
Read the guideThe program at a glance
Key rules from official IRS guidance. These are program parameters, not measures of our impact.
Sources: IRS program overview and Notice 2025-68. Content reviewed October 8, 2026. Check official guidance before acting.
We explain the program independently. References to government agencies and outside organizations do not imply a partnership with Future Funds.
Clear answers to common questions
Start here, then explore the full FAQ for contribution rules, taxes, and other considerations.
What happens if contributions exceed the annual limit?
Contributions subject to the limit generally cannot exceed $5,000 per child annually during the growth period, with inflation adjustments after 2027. Trustees must monitor the limit, but families should coordinate all contributors too. If an excess is accepted, contact the trustee and a qualified tax professional promptly about correction procedures and any tax consequences. Do not assume an ordinary withdrawal is permitted.
When is the annual contribution deadline?
During the growth period, contributions count for the calendar year in which they are made. A contribution received in the following spring cannot be designated for the prior year as it sometimes can with an ordinary IRA. Confirm processing deadlines with the trustee, and allow time for transfers. Unused annual contribution room does not carry forward.
What records and tax forms should I keep?
Keep the election confirmation, activation documents, contribution records, and statements identifying the source of funds. The trustee has reporting obligations for contributions, distributions, balances, and basis. Use the current IRS reporting instructions and the forms your trustee provides; requirements may differ during and after the growth period.
How could the account affect college financial aid?
Aid programs have their own asset and income rules. The FAFSA, institutional aid applications, withdrawals, and Roth conversions may involve different considerations. Consult current Federal Student Aid instructions and the college’s financial-aid office; do not assume that this account is either excluded or assessed in a particular way without checking.
Could the account affect SNAP, Medicaid, or SSI?
Treatment depends on the benefit program, applicable state rules, and whether funds are accessible. Do not assume that restricted funds are automatically exempt from every resource test, or that treatment remains the same after the growth period. A benefits counselor or the administering agency can assess the child’s circumstances.
What happens if the beneficiary dies?
Special rules apply if the beneficiary dies during the growth period: the account’s status changes, and tax consequences may arise for the recipient or estate. After the growth period, inherited IRA rules generally apply. The trustee and a qualified estate or tax professional should guide the process.