ASPIRE Act would create seed fund for 529 plans
The ASPIRE Act of 2005 (S.868), as introduced in the Senate on April 21, 2005, would create a $500 "KIDS" savings account in the U.S. Treasury for every child born after 2006. As much as $1,000 could be contributed to the account each year by family members or others. Low income families would be eligible for up to $500 in additional government seed funding and ongoing matching contributions.
The KIDS account would be invested in government-administered portfolios. It would not be accessible prior to age 18. At age 18 it could be rolled into a Roth IRA or 529 Plan, or could continue under rules similar to the Roth IRA. The federal government would reclaim its share of contributions to the account at age 30, or later on through a 100% tax.
For more information, click hereReturn to 529 News centerThe KIDS account would be invested in government-administered portfolios. It would not be accessible prior to age 18. At age 18 it could be rolled into a Roth IRA or 529 Plan, or could continue under rules similar to the Roth IRA. The federal government would reclaim its share of contributions to the account at age 30, or later on through a 100% tax.