Federal Investment Accounts for Children Launched, Drawing Contributions

Why it matters locally: The launch of these federal tax-advantaged investment accounts for children could offer new financial planning avenues for California families and potentially influence state-level educational savings initiatives.

WASHINGTON – Federal tax-advantaged investment accounts for children have officially opened. Eighty-seven entities, comprising companies, foundations, individuals, and states, have announced contributions to these new accounts. Economic correspondent Paul Solman has begun analyzing whether these accounts can fulfill the benefits their creators promote. These accounts represent the first federal tax-advantaged investment option specifically designed for children.