Hospitals to Offer Enrollment for Government-Branded Savings Accounts at Birth

The Social Security Administration announced Friday that hospitals will begin providing information on government-branded savings accounts when parents apply for a newborn's Social Security number. The accounts allow annual contributions of up to $5,000 for U.S. citizens under age 18. After age 18 the accounts convert to traditional IRAs with standard tax treatment.

Investment options are limited to mutual funds or ETFs that track major U.S. stock indices. Children born between January 1, 2025 and December 31, 2028 will receive a one-time government contribution of $1,000. The accounts were authorized under legislation signed last July. Officials said the program is intended to encourage long-term saving.

Parents can open accounts by completing IRS Form 4547 when filing tax returns. Accounts can be managed through an official website and mobile app. The Social Security Administration said it will update hospital forms and future mailings to include enrollment instructions. Families were able to set up accounts in advance, though deposits could not begin until Saturday.