WI AB1022

Department of Financial Institutions must establish baby bond accounts with $3,000 deposits for children born to mothers who met Medical Assistance income requirements the day before birth, with funds managed by the State of Wisconsin Investment Board

Account beneficiaries may receive full account balance distribution at age 18 if they are Wisconsin residents, complete a DFI financial literacy course, and certify funds will be used for eligible expenses (postsecondary education, child care, home purchase, starting a business, or retirement savings contributions)

Beneficiaries who relocate out of Wisconsin before age 18 remain eligible if they return and maintain residency for at least one year thereafter

Distributions are exempt from state income tax and account balances cannot be considered when determining eligibility for need-based state or local programs

Accounts may be terminated if the beneficiary dies, the balance reaches $0, or the beneficiary reaches age 30 without requesting distribution; remaining balances stay in the baby bond fund for new accounts or allocation to existing accounts