1. Short title This Act may be cited as the 401Kids Savings Account Act of 2024 . 2. 401Kids Account Programs (a) In general Section 529 of the Internal Revenue Code of 1986 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: (f) 401Kids Account Programs (1) In general A qualified tuition program shall not be treated as failing to meet the requirements of this section solely because such program includes a 401Kids Account Program. (2) 401Kids Account Program For purposes of this section— (A) In general The term 401Kids Account Program means a program established and maintained by a State or agency or instrumentality thereof which— (i) establishes a savings account (referred to in this subsection as a 401Kids Savings Account ) which meets the requirements of this subsection on behalf of every eligible individual as of the later of— (I) birth or naturalization, or (II) establishment of the program under this section, including eligible individuals who are in foster care, in coordination with the applicable State agency, and notifies such individuals of the establishment of such accounts, (ii) requires the assets of each 401Kids Savings Account established under the program to be held by a person designated by the State or agency or instrumentality, (iii) within the limitations of paragraph (3), permits contributions to be made periodically to such 401Kids Savings Accounts by direct deposit through payroll deduction or by electronic means, and by methods that provide access for people with limited access to the financial system, (iv) provides for the annual deposit under section 3(b)(4) of the 401Kids Savings Account Act of 2024 and the matching contributions under section 3(b)(5) of such Act to be made to such 401Kids Savings Accounts, if applicable, (v) permits distributions and rollovers from such 401Kids Savings Accounts as provided in paragraph (4), (vi) except as provided in the second sentence of this subparagraph, prohibits