Karla Javier

The accounts have the potential to be the most significant wealth-building policy for children in U.S.

history, says Qin Huang at Washington University in St.

Louis.

And Huang is worried that the design won't work.

Parents have to opt-in to open the accounts for their kids, even though all American kids under 18 with Social Security numbers are eligible.

And the only way for them to opt-in, at least right now, is by filing their income tax returns along with the brand new IRS Form 4547.

Madeline Brown at the Urban Institute says the choice to link enrollment primarily to tax filing...

Another problem?

Right now, it seems awareness of the accounts can be low.

Denise Ocaña at the United Way of Greater Los Angeles runs a tax prep site for people with low incomes, disabilities, and limited English skills.

Ocaña says the IRS has provided materials and training to explain the new accounts and the $1,000 for babies born between 2025 and 2028.

A lot of her clients, once they know about the program, are choosing to enroll their eligible kids.

She sees a potential upside to the opt-in design.

In other words, Ocaña says, people in immigrant communities who might be worried that the IRS would share their information with Homeland Security.

I'm Karla Javier for Marketplace.