Federal Investment Accounts for Children Launched, Drawing Contributions

Why it matters locally: While the direct impact on South Dakota is generally aligned with the national rollout of these federal accounts, the state's demographics and economic structure mean that families here, like those nationwide, will have access to a new way to save for their children's futures.

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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.