H.R. 9920: Foster Youth Investment Act

This bill would change tax rules for “Trump accounts” so that people can make general contributions for certain foster children.

What changes

• It adds a new category of eligible account beneficiaries: children who are under 18 and who are either:
  • an eligible foster child of a taxpayer, or
  • under the custody, supervision, or guardianship of a state or Indian tribal government.
• It also allows contribution rules to combine this foster-child group with other existing groups that can receive contributions, as long as the beneficiary is still under 18 for the year the contribution is made.
• The changes would apply to contributions made after December 31, 2025.

Plain-language effect

In simple terms, the bill would let more people contribute money into these tax-advantaged accounts for children in foster care or children under government care. The goal appears to be to make these accounts available to a broader set of minors, specifically including foster youth.

Relevant Companies

None found