BabySteps

Claim your child's $50 by opening a U.Fund 529 College Savings Account with Fidelity Investments within one year of their birth or adoption.

Click the button below to visit Fidelity and create an account!

Complete una solicitud en español y recibe la inversión de $50 para los futuros gastos de educación de sus niños. 

Los residentes pueden abrir una cuenta U.Fund 529 en español. Haga clic en el botón a continuación para descargar la solicitud de Fidelity. Imprima, complete, firme con tinta y envíe su solicitud por correo postal a la dirección que aparece en la solicitud.

Adopted children can receive the $50 deposit in a few easy steps:

Step 1: Open a U.Fund 529 account within one year of your child's adoption.

Step 2: Complete the BabySteps Adoption Verification Form

Who is eligible to receive the $50 seed deposit? 

To be eligible to receive the $50 seed deposit provided by BabySteps, a child must:

• Live in Massachusetts.

• Have been born or adopted less than one year ago. This means before the child’s first birthday or the date of their first adoption anniversary. Children are not eligible to receive the $50 deposit on or after the day of their first birthday or first adoption anniversary.

  Example: If your child was born or adopted on January 1, 2025, the last day they are eligible for BabySteps is December 31, 2025. As of January 1, 2026, the child is no longer eligible.

• Be named the Beneficiary on a MEFA U.Fund 529 account within one year of birth or adoption.

When will I receive the $50 deposit? 

Eligible BabySteps accounts will receive their free $50 deposit approximately 6 weeks after opening their MEFA U.fund 529 account. 

What is a MEFA U.Fund 529 account? 

Every savings account affiliated with the BabySteps Savings Plan will be a MEFA U.Fund 529 account, a tax-advantaged plan authorized by Section 529 of the Internal Revenue Code. A 529 is a savings account that can provide tax-free investment growth and withdrawals for qualified expenses such as college, vocational, and other educational costs. These accounts are specifically offered by the Massachusetts Educational Financing Authority (MEFA), a state authority established by the Commonwealth, and managed by Fidelity Investments.

Why open a 529 account at birth?

Opening a 529 account early doesn’t just mean your savings have time to grow—research has shown that children with savings do better in school and have a greater college-bound identity!

Among children who expected to go to college, those with a savings account are six times more likely to attend than those with no account. And, low-income children with anywhere from $1 to $499 in college savings are three times more likely to enroll in college, and four times more likely to finish their degree.

Learn more about Children's Savings Accounts.

What information do I need to create an account? 

For the account holder (parent, family member, or trusted friend) you will need to provide your:

• Full Name (please double check the spelling matches your official documents such as passport)
• A form of Tax Identification Number: Either a Social Security Number or Employer Identification Number (EIN)/Federal Tax Identification Number
• Date of Birth
• Legal Address
• Phone Number
• Email Address
• Employment Information (if employed)

For the beneficiary (the child) you will need to provide their:

• Name
• Social Security Number
• Date of Birth
• Legal Address

What can the savings in a 529 account be used for? 

529 funds can be used to pay for:

• K-12 tuition expenses ($10,000 per year)
• Vocational school
• Certain apprenticeship programs
• College costs including tuition and fees, books and supplies, room and board, and special needs services
• Repayment of qualified student loans up to $10,000
• If not used for educational expenses, funds can be rolled over into a Roth IRA after being in the account for 15 years

Will the BabySteps program affect my public benefits?

Most public benefit programs, including SNAP benefits, are unaffected by savings in a 529 account.

What should I do if my child was not born or adopted less than one year ago? 

Children must be enrolled in BabySteps within one year of birth or adoption to receive the $50 BabySteps deposit. After one year of their birth or adoption, they are no longer eligible for BabySteps. 

Children in Boston may be eligible for Boston Saves.

We encourage families with children of any age to explore their college and career savings options. 

Learn more about MEFA college and career savings. 

Can someone other than a parent open a child's MEFA U.Fund 529 account? 

Yes! Anyone, including a family member or trusted friend, can open a child's MEFA U.Fund 529 account if that person has all the necessary information. This person will be the owner of the account. 

Will this account affect my child's financial aid eligibility? 

529 assets have a relatively small effect on federal financial aid eligibility because they are considered the parent's assets in the Expected Family Contribution (EFC). Parent assets in 529 savings accounts (or any savings account) are treated at a rate of at most 5.6% in the EFC.

Learn more about the effect of 529 accounts on financial aid.

I created a MEFA U.Fund 529 account for my child before they were born.  Can the $50 be deposited into my existing account?

At this time, you must open a new MEFA U.Fund 529 account to receive your $50 BabySteps seed deposit. Please know you are allowed to have more than one MEFA U.Fund 529 account for a Beneficiary. You may merge the accounts at a later time if you would like to do so.

Is my child required to attend college or vocational school in Massachusetts?

No! Funds saved within the MEFA U.Fund 529 account can be used at any accredited college or vocational school across the U.S. and in other countries throughout the world as long as they are set up to take U.S. Federal Funds. 

Can anyone else contribute to my account?

Yes! Any family member or friend can add to your MEFA U.Fund 529 account through College Gifting. 

Learn more about gifting with a U.Fund 529 account. 

Are ABLE accounts eligible for the BabySteps deposit?

ABLE accounts are not eligible for the BabySteps deposit. However, a family may open a MEFA U.Fund 529 account for a child, receive the $50 seed deposit into the 529 account, and then transfer those funds into an ABLE account for the same child without incurring any tax or penalty. The funds rolled over from the 529 account are subject to the annual contribution limit of $15,000 into an ABLE account.

How is BabySteps funded?

The $50 deposits for BabySteps are funded through the Economic Empowerment Trust Fund and public-private partnerships. The founding sponsor of the program is the Hildreth Stewart Charitable Foundation, with additional funding support from MEFA and other charitable partners.

What will this look like when my child is an adult?

You can use the College Savings Estimator from MEFA, assuming an annual investment return of 7%, to predict what savings will grow to when the child turns 18.

Click here to see the impact of saving over time with BabySteps!

What is the Office of Economic Empowerment?

The Office of Economic Empowerment (OEE) is a department of State Treasurer and Receiver General Deborah B. Goldberg tasked with offering free and accessible financial education, promoting wage equality, and creating a bright future for children across the state. The office delivers programs to all residents of Massachusetts at every stage of their lives, regardless of their economic background. OEE also offers initiatives tailored to meet the unique financial experiences of veterans, women, high school students, and older adults. 

Find resources to help you spread the word about how families can claim their free $50 BabySteps deposit to save for college and career training costs from the State Treasurer's Office of Economic Empowerment.

Visit the BabySteps Outreach Toolkit