Projecting Cash Needs for Adoption or Fertility Treatment

Building a family through adoption or fertility treatment involves significant financial planning alongside the emotional journey. Costs can range from $15,000 to over $60,000 depending on the path chosen, and families benefit from understanding the full financial picture before beginning. This guide covers realistic cost projections, available financial resources, and savings strategies for families preparing for adoption or fertility treatments.

Adoption Cost Ranges

Adoption costs vary dramatically based on the type of adoption pursued. Understanding these ranges helps families choose a path that aligns with both their family-building goals and financial capacity.

Domestic Infant Adoption: $30,000 - $60,000

This includes:

• Agency fees: $15,000 - $30,000
• Home study: $1,500 - $3,000
• Legal fees: $5,000 - $10,000
• Birth mother expenses (where allowed by state): $5,000 - $15,000
• Travel and lodging: $2,000 - $5,000

Timeline: 1-5 years (highly variable)

International Adoption: $25,000 - $50,000

This includes:

• Agency fees: $10,000 - $20,000
• Home study and dossier preparation: $3,000 - $5,000
• Foreign program fees: $5,000 - $15,000
• Travel (often 2-3 trips): $5,000 - $10,000
• Translation and document authentication: $2,000 - $4,000

Timeline: 2-4 years depending on country

Foster Care Adoption: $0 - $5,000

Foster care adoption is significantly less expensive, with most costs covered by the state. Remaining costs include:

• Legal fees (often subsidized): $0 - $2,500
• Home study (often provided free): $0 - $1,500
• Court costs: $0 - $500

Timeline: 6 months to 2 years

Private Adoption (attorney-facilitated): $25,000 - $45,000

Similar to agency adoption but coordinated through an attorney rather than an agency.

Fertility Treatment Costs

Fertility treatments range from relatively affordable interventions to expensive procedures that may require multiple attempts.

IVF (In Vitro Fertilization): $15,000 - $25,000 per cycle

Breakdown of typical IVF cycle costs:

• Medications: $3,000 - $6,000
• Monitoring and bloodwork: $1,500 - $3,000
• Egg retrieval procedure: $3,000 - $5,000
• Lab fees (fertilization, culture): $3,000 - $5,000
• Embryo transfer: $2,000 - $4,000
• Anesthesia: $500 - $1,000

Important: Many families require 2-3 IVF cycles before achieving pregnancy. Budget accordingly.

Additional IVF-related costs:

• Frozen embryo transfer (FET): $3,000 - $6,000
• Preimplantation genetic testing (PGT): $3,000 - $7,000
• Egg or sperm donation: $5,000 - $15,000 additional
• Gestational carrier: $75,000 - $150,000 total

Other fertility treatments:

• IUI (Intrauterine Insemination): $500 - $2,000 per cycle
• Fertility medications only: $200 - $3,000 per cycle
• Diagnostic testing: $1,000 - $3,000

Employer Benefits and Insurance Coverage

Before assuming you'll pay full costs, investigate all available coverage options.

Employer fertility benefits:

Many large employers now offer fertility coverage. Check your benefits package for:

• IVF coverage (number of cycles, lifetime maximum)
• Fertility medication coverage
• Diagnostic testing coverage
• Fertility preservation (egg freezing)

Companies known for strong fertility benefits include many Fortune 500 employers, particularly in technology, finance, and professional services.

Employer adoption assistance:

Some employers offer adoption benefits including:

• Reimbursement programs: typically $5,000 - $25,000
• Paid adoption leave
• Legal referral services

State insurance mandates:

As of 2024, several states require insurance coverage for fertility treatments:

• Mandated IVF coverage: Arkansas, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island
• Limited or partial mandates: California, Colorado, Louisiana, Montana, Ohio, Texas, West Virginia

Coverage requirements and limitations vary by state. Review your specific state's mandate carefully.

The Adoption Tax Credit

The federal adoption tax credit provides significant tax relief for qualifying adoption expenses.

2024 Adoption Tax Credit:

• Maximum credit: $16,810 per child
• Applies to: qualified adoption expenses including fees, court costs, attorney fees, and travel
• Income phase-out begins: $252,150 (modified adjusted gross income)
• Income phase-out complete: $292,150

Key details:

• The credit is per child, not per adoption attempt
• For domestic adoptions, claim the credit in the year the adoption finalizes
• For international adoptions, claim expenses in the year paid or the year the adoption finalizes, whichever is later
• Special needs adoptions may qualify for the full credit regardless of actual expenses
• The credit is non-refundable but can be carried forward for up to 5 years

Example: A family with $45,000 in adoption expenses can claim the full $16,810 credit. If their tax liability is only $10,000 in the finalization year, they claim $10,000 and carry forward $6,810 to the following year.

Worked Example: Budgeting for 2 IVF Cycles Over 18 Months

Maria and David have decided to pursue IVF after two years of trying to conceive. Their fertility clinic estimates $20,000 per cycle, and their doctor recommends budgeting for 2 cycles.

Their financial situation:

• Combined annual income: $140,000
• Current savings: $15,000 (designated as emergency fund)
• Monthly take-home pay: $9,500
• Current monthly savings rate: $1,200

Insurance coverage: Their employer insurance covers diagnostic testing but not IVF procedures. Maria's employer offers a $10,000 lifetime fertility benefit.

Total projected costs:

Savings timeline: 18 months before first cycle

Monthly savings needed: $30,000 / 18 months = $1,667/month

Their plan to reach the goal:

Current savings capacity: $1,200/month

Additional savings identified:

• Reduce dining out: +$150/month
• Pause vacation savings temporarily: +$300/month
• Reduce clothing/personal spending: +$100/month

New monthly savings for fertility: $1,750/month

Projected savings schedule:

Timing strategy:

They plan to begin IVF at month 12, when the first cycle is fully funded. If the first cycle succeeds, they redirect the remaining savings to an emergency/baby fund. If a second cycle is needed, they'll have 6 additional months of savings ($10,500) plus any remaining savings, totaling sufficient funds for cycle 2.

Additional considerations:

• They keep their $15,000 emergency fund intact (medical treatment doesn't replace emergency savings)
• They open a separate high-yield savings account labeled "Fertility Fund"
• They set up automatic transfers of $1,750 on each payday
• They document all expenses carefully for potential future tax deductions if pursuing adoption

Financing Options to Approach Carefully

When savings fall short, some financing options exist. Consider these carefully, understanding the risks:

Fertility clinic payment plans:

• Many clinics offer 6-12 month payment plans
• Interest rates vary; some are interest-free
• Ensure you understand all terms before signing

Medical credit cards (CareCredit, etc.):

• Often offer promotional 0% APR periods
• High interest rates (24%+) if not paid in full during promotional period
• Use only if confident you can pay before promotion ends

Home equity loans or lines of credit:

• Lower interest rates than credit cards
• Puts your home at risk if unable to repay
• Consider only as a last resort

Grants and loans:

• Several organizations offer fertility and adoption grants
• Typically competitive application processes
• Examples: The Gift of Parenthood, Baby Quest Foundation, Cade Foundation

What to avoid:

• High-interest personal loans
• 401(k) loans (jeopardizes retirement)
• Credit card debt at standard rates
• Borrowing from family without clear repayment terms

Adoption and Fertility Planning Checklist

• Research all costs for your chosen path (adoption type or fertility treatment)
• Review employer benefits for fertility coverage or adoption assistance
• Check state insurance mandates for fertility coverage
• Calculate total projected costs including multiple attempts if applicable
• Subtract employer benefits and insurance coverage from total needed
• Determine savings timeline based on when you want to begin
• Calculate monthly savings required
• Open a dedicated savings account for these expenses
• Set up automatic monthly transfers
• Maintain your regular emergency fund separately
• Document all expenses for potential tax credit claims
• Research the adoption tax credit and eligibility requirements
• Investigate grants and assistance programs
• Avoid high-interest financing options
• Build in a 10-20% buffer for unexpected costs