CA AB2548

Increases seed deposits in California Kids Investment and Development Savings (KIDS) Accounts from at least $25 to at least $100, effective with the 2024-25 fiscal year upon legislative appropriation.

KIDS Accounts are automatically established for California resident children born on or after July 1, 2022, with parents able to opt out.

Seed deposits and investment earnings remain state assets until used for qualified higher education expenses at eligible institutions or until the beneficiary turns 26 years of age.

Unused funds in KIDS Accounts are forfeited and returned to the program fund if not used for higher education expenses before the beneficiary reaches age 26, unless the board approves an appeal.

Parents and legal guardians receive notification about their child's KIDS Account within 90 days of birth certificate registration and can establish additional separate accounts to access additional financial incentives.