I 

111TH CONGRESS 

2D SESSION H. R. 4682 

To encourage savings, promote financial literacy, and expand opportunities 

for young adults by establishing Lifetime Savings Accounts. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 24, 2010 

Mr. KENNEDY (for himself, Mr. PETRI, and Mr. COOPER) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To encourage savings, promote financial literacy, and expand 

opportunities for young adults by establishing Lifetime 

Savings Accounts. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘America Saving for Personal Investment, Retirement, 

6 and Education Act of 2010’’ or the ‘‘ASPIRE Act of 

7 2010’’. 

8 (b) TABLE OF CONTENTS.—The table of contents for 

9 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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Sec. 2. ASPIRE Fund. 

Sec. 3. Lifetime Savings Accounts. 

Sec. 4. Certifications related to Government contributions. 

Sec. 5. Rules governing Lifetime Savings Accounts relating to investment, accounting, and reporting. 

Sec. 6. Tax treatment of Lifetime Savings Accounts. 

Sec. 7. Private management of Lifetime Savings Accounts. 

Sec. 8. ASPIRE Fund Board. 

Sec. 9. Fiduciary responsibilities. 

Sec. 10. Assignment, alienation, and treatment of deceased individuals. 

Sec. 11. Accounts disregarded in determining eligibility for Federal benefits. 

Sec. 12. Reports. 

Sec. 13. Programs for promoting financial literacy. 

1 SEC. 2. ASPIRE FUND. 

2 (a) ESTABLISHMENT.—There is established in the 

3 Treasury of the United States an ASPIRE Fund. 

4 (b) AMOUNTS HELD BY FUND.—The ASPIRE Fund 

5 consists of the sum of all amounts paid into the Fund 

6 under subsections (d) and (e), increased by the total net 

7 earnings from investments of sums held in the Fund or 

8 reduced by the total net losses from investments of sums 

9 held in the Fund, and reduced by the total amount of pay10 ments made from the Fund (including payments for ad11 ministrative expenses). 

12 (c) USE OF FUND.— 

13 (1) IN GENERAL.—The sums in the ASPIRE 

14 Fund are appropriated and shall remain available 

15 without fiscal year limitation— 

16 (A) to invest under section 5, 

17 (B) to make distributions as provided pur18 suant to section 6, 


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1 (C) to pay the administrative expenses of 

2 carrying out this Act, and 

3 (D) to purchase insurance as provided in 

4 section 9(c)(2). 

5 (2) EXCLUSIVE PURPOSES.—The sums in the 

6 ASPIRE Fund shall not be appropriated for any 

7 purpose other than the purposes specified in this 

8 section and may not be used for any other purpose. 

9 (d) GOVERNMENT CONTRIBUTIONS.— 

10 (1) IN GENERAL.—The Secretary of the Treas11 ury shall make transfers from the general fund of 

12 the Treasury to the ASPIRE Fund as follows: 

13 (A) AUTOMATIC CONTRIBUTIONS.—Upon 

14 receipt of each certification under section 3(b), 

15 the Secretary of the Treasury shall transfer 

16 $500. 

17 (B) SUPPLEMENTAL CONTRIBUTIONS.— 

18 Upon receipt of each certification under section 

19 4(a), the Secretary of the Treasury shall trans20 fer the supplemental amount. 

21 (C) MATCHING CONTRIBUTIONS.—Upon 

22 receipt of each certification under section 4(b), 

23 the Secretary of the Treasury shall transfer the 

24 matching amount. 

25 (2) ADJUSTMENT FOR INFLATION.— 


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1 (A) IN GENERAL.—For each fifth calendar 

2 year beginning after 2010, the $500 amount in 

3 paragraph (1)(A) shall be increased by such 

4 dollar amount multiplied by the cost-of-living 

5 adjustment determined under section 1(f)(3) of 

6 the Internal Revenue Code of 1986 determined 

7 by substituting ‘‘calendar year 2009’’ for ‘‘cal8 endar year 1992’’ in subparagraph (B) thereof. 

9 (B) ROUNDING.—If any amount adjusted 

10 under subparagraph (A) is not a multiple of 

11 $50, such amount shall be rounded to the next 

12 lowest multiple of $50. 

13 (e) PRIVATE CONTRIBUTIONS.—The Executive Di14 rector shall pay into the ASPIRE Fund such amounts as 

15 are contributed under section 3(f). 

16 SEC. 3. LIFETIME SAVINGS ACCOUNTS. 

17 (a) ESTABLISHMENT.—The Executive Director shall 

18 establish in the ASPIRE Fund a Lifetime Savings Ac19 count for each eligible individual certified under subsection 

20 (b). Each such account shall be identified to its account 

21 holder by means of the account holder’s social security ac22 count number. 

23 (b) CERTIFICATION OF ACCOUNT HOLDERS.—On the 

24 date on which an eligible individual is issued a social secu25 rity account number under section 203(c)(2) of the Social 


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1 Security Act, the Commissioner of Social Security shall 

2 certify to the Executive Director and the Secretary of the 

3 Treasury the name of, and social security number issued 

4 to, such eligible individual. 

5 (c) ACCOUNT BALANCE.—The balance in an account 

6 holder’s Lifetime Savings Account at any time is the ex7 cess of— 

8 (1) the sum of— 

9 (A) all deposits made into the ASPIRE 

10 Fund and credited to the account under sub11 section (d), and 

12 (B) the total amount of allocations made 

13 to and reductions made in the account pursuant 

14 to subsection (e), over 

15 (2) the amounts paid out of the account with 

16 respect to such individual under section 6. 

17 (d) CREDITING OF CONTRIBUTIONS.—Pursuant to 

18 regulations which shall be prescribed by the Executive Di19 rector, the Executive Director shall credit to each Lifetime 

20 Savings Account the amounts paid into the ASPIRE Fund 

21 under subsections (d) and (e) of section 2 which are attrib22 utable to the account holder of such account. 

23 (e) ALLOCATION OF EARNINGS AND LOSSES.—The 

24 Executive Director shall allocate to each Lifetime Savings 

25 Account an amount equal to the net earnings and net 


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1 losses from each investment of sums in the ASPIRE Fund 

2 which are attributable, on a pro rata basis, to sums cred3 ited to such account, reduced by an appropriate share of 

4 the administrative expenses paid out of the net earnings, 

5 as determined by the Executive Director. 

6 (f) PRIVATE CONTRIBUTIONS.— 

7 (1) IN GENERAL.—The Executive Director shall 

8 accept cash contributions for payment into the AS9 PIRE Fund if such contribution is identified (in 

10 such manner as the Executive Director may require) 

11 with the account holder of a Lifetime Savings Ac12 count to whom it is to be credited at the time the 

13 contribution is made. 

14 (2) ALTERNATIVE METHODS OF CONTRIBU15 TION.— 

16 (A) PAYROLL DEDUCTION.—Under regula17 tions prescribed by the Executive Director and 

18 at the election of the employer, contributions 

19 under paragraph (1) may be made through pay20 roll deductions. 

21 (B) TAX REFUNDS.—Under regulations 

22 prescribed by the Secretary of the Treasury, 

23 contributions under paragraph (1) may be made 

24 by an election to contribute all or a portion of 

25 the tax refund of the contributor. 


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1 (3) ANNUAL LIMITATION.— 

2 (A) ACCOUNT HOLDERS UNDER AGE 18.— 

3 In the case of an account holder who has not 

4 attained age 18 at the end of a calendar year— 

5 (i) the limitation under section 

6 219(b)(1) of the Internal Revenue Code of 

7 1986 shall not apply, and 

8 (ii) the Executive Director shall not 

9 accept any contribution identified with 

10 such account holder if such contribution, 

11 when added to all other contributions made 

12 under this subsection during such calendar 

13 year with respect to such account holder, 

14 exceeds $2,000. 

15 (B) ACCOUNT HOLDERS AGE 18 OR

16 OLDER.—In the case of an account holder who 

17 is age 18 or older at the end of a calendar year, 

18 any contribution identified with such account 

19 holder shall be taken into account under section 

20 219(b)(1) of the Internal Revenue Code of 

21 1986 for such year. 

22 (C) ADJUSTMENT FOR INFLATION.— 

23 (i) IN GENERAL.—For each fifth cal24 endar year beginning after 2010, the 

25 $2,000 amount under subparagraph (A)(ii) 


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1 shall be increased by such dollar amount 

2 multiplied by the cost-of-living adjustment 

3 determined under section 1(f)(3) of the In4 ternal Revenue Code of 1986 determined 

5 by substituting ‘‘calendar year 2009’’ for 

6 ‘‘calendar year 1992’’ in subparagraph (B) 

7 thereof. 

8 (ii) ROUNDING.—If any amount ad9 justed under clause (i) is not a multiple of 

10 $50, such amount shall be rounded to the 

11 next lowest multiple of $50. 

12 (g) ELIGIBLE INDIVIDUAL.—For purposes of this 

13 Act, the term ‘‘eligible individual’’ means any individual 

14 who is— 

15 (1) a United States citizen or a person de16 scribed in paragraph (1) of section 431(b) of the 

17 Personal Responsibility and Work Opportunity Rec18 onciliation Act of 1996, 

19 (2) born after December 31, 2009, and 

20 (3) less than 18 years of age. 

21 (h) RIGHTS OF LEGAL GUARDIAN.—Until the ac22 count holder of a Lifetime Savings Account attains age 

23 18, any rights or duties of the account holder under this 

24 Act with respect to such account shall be exercised or per25 formed by the legal guardian of such account holder. 


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1 SEC. 4. CERTIFICATIONS RELATED TO GOVERNMENT CON2 TRIBUTIONS. 

3 (a) SUPPLEMENTAL GOVERNMENT CONTRIBU4 TIONS.— 

5 (1) IN GENERAL.—Upon such showing as the 

6 Executive Director may require to establish the basis 

7 for certification, the Executive Director shall, with 

8 respect to each eligible account holder, certify to the 

9 Secretary of the Treasury the supplemental amount 

10 with respect to such account holder. 

11 (2) ELIGIBLE ACCOUNT HOLDER.—For pur12 poses of this subsection, the term ‘‘eligible account 

13 holder’’ means an account holder of a Lifetime Sav14 ings Account who, for the last taxable year ending 

15 before such account holder’s certification under sec16 tion 3(b), has a modified adjusted gross income 

17 which is below the applicable national median ad18 justed gross income amount. 

19 (3) SUPPLEMENTAL AMOUNT.— 

20 (A) IN GENERAL.—For purposes of this 

21 Act, the term ‘‘supplemental amount’’ means 

22 $500. 

23 (B) INCOME PHASE-OUT.—With respect to 

24 any account holder who has a modified adjusted 

25 gross income for the last taxable year ending 

26 before such account holder’s certification under 


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1 section 3(b) which is in excess of 75 percent of 

2 the applicable national median adjusted gross 

3 income amount, the $500 amount in subpara4 graph (A) shall be reduced (but not below zero) 

5 by an amount which bears the same ratio to 

6 $500 as such excess bears to 25 percent of the 

7 applicable national median adjusted gross in8 come amount. 

9 (C) ADJUSTMENT FOR INFLATION.— 

10 (i) IN GENERAL.—For each fifth cal11 endar year beginning after 2010, each of 

12 the $500 amounts under subparagraphs 

13 (A) and (B) shall be increased by such dol14 lar amount multiplied by the cost-of-living 

15 adjustment determined under section 

16 1(f)(3) of the Internal Revenue Code of 

17 1986 determined by substituting ‘‘calendar 

18 year 2009’’ for ‘‘calendar year 1992’’ in 

19 subparagraph (B) thereof. 

20 (ii) ROUNDING.—If any amount ad21 justed under clause (i) is not a multiple of 

22 $50, such amount shall be rounded to the 

23 next lowest multiple of $50. 

24 (b) GOVERNMENT MATCHING CONTRIBUTION.— 


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1 (1) IN GENERAL.—Upon such showing as the 

2 Executive Director may require to establish the basis 

3 for certification, the Executive Director shall, with 

4 respect to each private contribution to the account 

5 of an account holder which is made before such ac6 count holder attains age 18, certify to the Secretary 

7 of the Treasury the matching amount with respect 

8 to such contribution. 

9 (2) MATCHING AMOUNT.— 

10 (A) IN GENERAL.—For purposes of this 

11 subsection, the term ‘‘matching amount’’ 

12 means, with respect to the first $500 of private 

13 contributions to an account during any calendar 

14 year, an amount equal to 100 percent of such 

15 contribution. 

16 (B) INCOME PHASE-OUT.—With respect to 

17 any account holder who has a modified adjusted 

18 gross income for the last taxable year ending 

19 before such contribution which is in excess of 

20 75 percent of the applicable national median 

21 adjusted gross income amount, the $500 

22 amount in subparagraph (A) shall be reduced 

23 (but not below zero) by an amount which bears 

24 the same ratio to $500 as— 

25 (i) such excess, bears to 


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1 (ii) 25 percent of the applicable na2 tional median adjusted gross income 

3 amount. 

4 (C) ADJUSTMENT FOR INFLATION.— 

5 (i) IN GENERAL.—For each fifth cal6 endar year beginning after 2010, each of 

7 the $500 amounts under subparagraphs 

8 (A) and (B) shall be increased by such dol9 lar amount multiplied by the cost-of-living 

10 adjustment determined under section 

11 1(f)(3) of the Internal Revenue Code of 

12 1986 determined by substituting ‘‘calendar 

13 year 2009’’ for ‘‘calendar year 1992’’ in 

14 subparagraph (B) thereof. 

15 (ii) ROUNDING.—If any amount ad16 justed under clause (i) is not a multiple of 

17 $50, such amount shall be rounded to the 

18 next lowest multiple of $50. 

19 (3) PRIVATE CONTRIBUTION.—For purposes of 

20 this subsection, the term ‘‘private contribution’’ 

21 means a contribution accepted under section 3(f). 

22 (c) DEFINITIONS AND RULES RELATING TO MODI23 FIED ADJUSTED GROSS INCOME.—For purposes of this 

24 section— 


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1 (1) SPECIAL RULE FOR ACCOUNT HOLDERS

2 WHO CAN BE CLAIMED AS DEPENDENTS.—In the 

3 case of an account holder of a Lifetime Savings Ac4 count for whom a deduction is allowable under sec5 tion 151 of the Internal Revenue Code of 1986 to 

6 another taxpayer, any reference in this section to the 

7 modified adjusted gross income of the account hold8 er for any taxable year shall be treated as a ref9 erence to the modified adjusted gross income of such 

10 other taxpayer. 

11 (2) MODIFIED ADJUSTED GROSS INCOME.—The 

12 term ‘‘modified adjusted gross income’’ has the 

13 meaning given such term in section 221(b) of the In14 ternal Revenue Code of 1986. 

15 (3) APPLICABLE NATIONAL MEDIAN ADJUSTED

16 GROSS INCOME.— 

17 (A) IN GENERAL.—The term ‘‘applicable 

18 national median adjusted gross income’’ means, 

19 with respect to any calendar year, the median 

20 amount of adjusted gross income (as defined in 

21 section 62 of the Internal Revenue Code of 

22 1986) for individual taxpayers for taxable years 

23 ending in the prior calendar year as determined 

24 by the Secretary of the Treasury. 


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1 (B) JOINT RETURNS.—The applicable na2 tional median adjusted gross income shall be 

3 calculated and applied separately with respect 

4 to joint returns and all other returns. 

5 SEC. 5. RULES GOVERNING LIFETIME SAVINGS ACCOUNTS 

6 RELATING TO INVESTMENT, ACCOUNTING, 

7 AND REPORTING. 

8 (a) DEFAULT INVESTMENT PROGRAM.—The AS9 PIRE Fund Board shall establish a default investment 

10 program under which, in a manner similar to a lifecycle 

11 investment program, sums in each Lifetime Savings Ac12 count are allocated to investment funds in the ASPIRE 

13 Fund based on the amount of time before the account 

14 holder attains the age of 18. Each account holder of a 

15 Lifetime Savings Account shall be enrolled in such pro16 gram unless such account holder, in such form and man17 ner as prescribed by the Executive Director, elects other18 wise. 

19 (b) OTHER RULES.—Under regulations which shall 

20 be prescribed by the Executive Director, and subject to 

21 the provisions of this Act, the provisions of— 

22 (1) section 8438 of title 5, United States Code 

23 (relating to investment of the Thrift Savings Fund), 


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1 (2) section 8439(b) of such title (relating to en2 gagement of independent qualified public account3 ant), 

4 (3) section 8439(c) of such title (relating to 

5 periodic statements and summary descriptions of in6 vestment options), and 

7 (4) section 8439(d) of such title (relating to as8 sumption of risk), 

9 shall apply with respect to the ASPIRE Fund and ac10 counts maintained in such Fund in the same manner and 

11 to the same extent as such provisions relate to the Thrift 

12 Savings Fund and the accounts maintained in the Thrift 

13 Savings Fund. For purposes of this subsection, references 

14 in such sections 8438 and 8439 to an employee, Member, 

15 former employee, or former Member shall be deemed ref16 erences to an account holder of a Lifetime Savings Ac17 count in the ASPIRE Fund. 

18 SEC. 6. TAX TREATMENT OF LIFETIME SAVINGS ACCOUNTS. 

19 (a) IN GENERAL.—Except as otherwise provided in 

20 this Act, for purposes of the Internal Revenue Code of 

21 1986— 

22 (1) each Lifetime Savings Account shall be 

23 treated in the same manner as a Roth IRA (within 

24 the meaning of section 408A of such Code), except 


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1 that section 408A of such Code shall be applied sep2 arately to Lifetime Savings Accounts, and 

3 (2) any distribution from such account shall be 

4 treated in the same manner as a distribution from 

5 a Roth IRA. 

6 (b) SEPARATE APPLICATION OF TAXATION RULES.— 

7 For purposes of this Act, section 408A, other than sub8 section (c) thereof (relating to treatment of contributions), 

9 of the Internal Revenue Code of 1986 shall be applied sep10 arately to Lifetime Savings Accounts. 

11 (c) MINIMUM BALANCE.—No amount shall be dis12 tributed pursuant to subsection (a)(2) to the extent such 

13 distribution would cause the balance of such account to 

14 be less than the amount transferred to such account under 

15 section 2(d)(1)(A) before the account holder— 

(1) attains age 591 16 ⁄2, 

17 (2) dies, or 

18 (3) becomes disabled (within the meaning of 

19 section 72(m)(7). 

20 (d) DISTRIBUTIONS FOR HIGHER EDUCATION.—In 

21 the case of higher education expenses of an account holder 

22 incurred during the period beginning on the date the ac23 count holder attains 18 and ending before the account 

24 holder attains 25, no amount shall be treated as a quali25 fied distribution pursuant to subsection (a)(2) unless such 


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1 amount is paid directly to the institution of higher edu2 cation (as defined in section 101 of the Higher Education 

3 Act of 1065 (20 U.S.C. 1001) through which the higher 

4 education is provided. 

5 (e) AGE LIMITATION.—Except as otherwise provided 

6 by this Act, no distribution shall be made under subsection 

7 (a) with respect to any account holder of a Lifetime Sav8 ings Account before such account holder attains age 18. 

9 (f) QUALIFIED ROLLOVERS CONTRIBUTIONS.— 

10 (1) IN GENERAL.—Under regulations prescribed 

11 by the Secretary of the Treasury in consultation 

12 with the Executive Director, any account holder of 

13 a Lifetime Savings Account may elect to make a 

14 rollover contribution from such account holder’s ac15 count to a privately managed Lifetime Savings Ac16 count (as defined in section 408B of the Internal 

17 Revenue Code of 1986). 

18 (2) LIMITATION.—No rollover contribution may 

19 be made under this paragraph to the extent that 

20 such rollover contribution would cause the balance of 

21 such account holder’s account to be less than the 

22 minimum balance specified in subsection (c). 

23 (g) 100 PERCENT TAX ON GOVERNMENT CONTRIBU24 TIONS.— 

25 (1) LIFETIME SAVINGS ACCOUNTS.— 


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1 (A) IN GENERAL.—In the case of any 

2 amount distributed from a Lifetime Savings Ac3 count which is attributable to contributions 

4 made under section 2(d) and which would be in5 cludible in gross income (but for this para6 graph)— 

7 (i) such amount shall not be includible 

8 in gross income, and 

9 (ii) the tax imposed under chapter 1 

10 of the Internal Revenue Code of 1986 on 

11 the distributee for the taxable year in 

12 which such amount is distributed shall be 

13 increased by 100 percent of such amount. 

14 (B) ORDERING RULES.—For purposes of 

15 this paragraph, distributions from Lifetime 

16 Savings Accounts shall be treated as made from 

17 amounts attributable to contributions made 

18 under section 3(f) and from earnings before 

19 made from amounts attributable to contribu20 tions made under section 2(d). 

21 SEC. 7. PRIVATE MANAGEMENT OF LIFETIME SAVINGS AC22 COUNTS. 

23 (a) IN GENERAL.—Part I of subchapter D of chapter 

24 1 of the Internal Revenue Code of 1986 is amended by 

25 inserting after section 408A the following new section: 


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1 ‘‘SEC. 408B. PRIVATELY MANAGED LIFETIME SAVINGS AC2 COUNTS. 

3 ‘‘(a) IN GENERAL.—Except as provided in this sec4 tion, a privately managed Lifetime Savings Account shall 

5 be treated in the same manner as a Roth IRA, except that: 

6 ‘‘(1) QUALIFIED SPECIAL PURPOSE DISTRIBU7 TIONS.—Qualified special distributions (as defined in 

8 section 408A(d)(5)) shall include— 

9 ‘‘(A) distributions to the extent that such 

10 distributions do not exceed qualified higher edu11 cation expenses (as defined in section 

12 529(e)(3)) of the beneficiary of a privately man13 aged Lifetime Savings Account, reduced by the 

14 sum of— 

15 ‘‘(i) the amount excluded from gross 

16 income under section 127, 135, 529, or 

17 530 by reason of such expenses, 

18 ‘‘(ii) the amount excluded from gross 

19 income under section 221 by reason of 

20 such expenses (determined without regard 

21 to the last sentence of subsection (d)(2) 

22 thereof), 

23 ‘‘(iii) the amount of any scholarship, 

24 allowance, or payment described in section 

25 25A(g)(2), and 


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1 ‘‘(iv) the amount of such expenses 

2 which were taken into account in deter3 mining the credit allowed to the taxpayer 

4 or any other person under section 25A, 

5 and 

6 ‘‘(B) amounts which within 60 days of dis7 tribution are transferred to a qualified tuition 

8 program under section 529 for the benefit of 

9 the account holder of a privately managed Life10 time Savings Account or a member of the fam11 ily (within the meaning of section 529(e)(2)) of 

12 such account holder. 

13 ‘‘(2) NONEXCLUSION PERIOD DOES NOT

14 APPLY.—Section 408A(d)(2)(B) shall not apply. 

15 ‘‘(3) QUALIFIED ROLLOVER.—In lieu of the def16 inition given the term ‘qualified rollover contribu17 tion’ under section 408A(e), such term shall mean a 

18 rollover contribution to a privately managed Lifetime 

19 Savings Account from another such account or from 

20 a Lifetime Savings Account under section 7(b)(2)(A) 

21 of the America Saving for Personal Investment, Re22 tirement, and Education Act of 2010, but only if 

23 such rollover contribution meets the requirements of 

24 section 408(d)(3). 


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1 ‘‘(4) AGE LIMITATION ON DISTRIBUTIONS.—Ex2 cept as otherwise provided in this section, no dis3 tribution may be made with respect to any account 

4 holder of a privately managed Lifetime Savings Ac5 count before such account holder attains age 18. 

6 ‘‘(5) TAXATION OF GOVERNMENT CONTRIBU7 TIONS.—In the case of any distribution which is at8 tributable to contributions made under section 2(d) 

9 of the America Saving for Personal Investment, Re10 tirement, and Education Act of 2010 and which 

11 would be includible in gross income (but for this 

12 paragraph)— 

13 ‘‘(A) such amount shall not be includible in 

14 gross income, and 

15 ‘‘(B) the tax imposed under chapter 1 on 

16 the distributee for the taxable year in which 

17 such amount is distributed shall be increased by 

18 100 percent of such amount. 

19 For purposes of this paragraph, distributions shall 

20 be treated as made from amounts attributable to 

21 other contributions and from earnings before made 

22 from amounts attributable to contributions made 

23 under section 2(d) of the America Saving for Per24 sonal Investment, Retirement, and Education Act of 

25 2010. 


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1 ‘‘(6) ASSIGNMENT, ALIENATION, AND TREAT2 MENT OF DECEASED INDIVIDUALS.—Section 10 of 

3 the America Saving for Personal Investment, Retire4 ment, and Education Act of 2010 shall apply in lieu 

5 of treatment under this subsection as a Roth IRA. 

6 ‘‘(b) PRIVATELY MANAGED LIFETIME SAVINGS AC7 COUNT.—For purposes of this title, the term ‘privately 

8 managed Lifetime Savings Account’ means an individual 

9 retirement plan (as defined in section 7701(a)(37)) which 

10 is designated (in such manner as the Secretary may pre11 scribe) as a privately managed Lifetime Savings Account 

12 and which meets the requirements of the America Saving 

13 for Personal Investment, Retirement, and Education Act 

14 of 2010.’’. 

15 (b) CONFORMING AMENDMENT.—The table of sec16 tions for part I of subchapter D of chapter 1 of the Inter17 nal Revenue Code of 1986 is amended by inserting after 

18 the item related to section 408A the following new item: 

‘‘Sec. 408B. Privately managed Lifetime Savings Accounts.’’. 

19 SEC. 8. ASPIRE FUND BOARD. 

20 (a) IN GENERAL.—There is established in the execu21 tive branch of the Government a ASPIRE Fund Board. 

22 (b) COMPOSITION, DUTIES, AND RESPONSIBIL23 ITIES.—Subject to the provisions of this Act, the provi24 sions of— 


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1 (1) section 8472 of title 5, United States Code 

2 (relating to composition of Federal Retirement 

3 Thrift Investment Board), 

4 (2) section 8474 of such title (relating to Exec5 utive Director), 

6 (3) section 8475 of such title (relating to in7 vestment policies), and 

8 (4) section 8476 of such title (relating to ad9 ministrative provisions), 

10 shall apply with respect to the ASPIRE Fund Board in 

11 the same manner and to the same extent as such provi12 sions relate to the Federal Retirement Thrift Investment 

13 Board. 

14 SEC. 9. FIDUCIARY RESPONSIBILITIES. 

15 (a) IN GENERAL.—Under regulations of the Sec16 retary of Labor, the provisions of sections 8477 and 8478 

17 of title 5, United States Code, shall apply in connection 

18 with the ASPIRE Fund and the accounts maintained in 

19 such Fund in the same manner and to the same extent 

20 as such provisions apply in connection with the Thrift Sav21 ings Fund and the accounts maintained in the Thrift Sav22 ings Fund. 

23 (b) INVESTIGATIVE AUTHORITY.—Any authority 

24 available to the Secretary of Labor under section 504 of 

25 the Employee Retirement Income Security Act of 1974 


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1 (29 U.S.C. 1134) is hereby made available to the Sec2 retary of Labor, and any officer designated by the Sec3 retary of Labor, to determine whether any person has vio4 lated, or is about to violate, any provision applicable under 

5 subsection (a). 

6 (c) EXCULPATORY PROVISIONS; INSURANCE.— 

7 (1) IN GENERAL.—Any provision in an agree8 ment or instrument which purports to relieve a fidu9 ciary from responsibility or liability for any responsi10 bility, obligation, or duty under this Act shall be 

11 void. 

12 (2) INSURANCE.—Amounts in the ASPIRE 

13 Fund available for administrative expenses shall be 

14 available and may be used at the discretion of the 

15 Executive Director to purchase insurance to cover 

16 potential liability of persons who serve in a fiduciary 

17 capacity with respect to the Fund and accounts 

18 maintained therein, without regard to whether a pol19 icy of insurance permits recourse by the insurer 

20 against the fiduciary in the case of a breach of a fi21 duciary obligation. 

22 SEC. 10. ASSIGNMENT, ALIENATION, AND TREATMENT OF 

23 DECEASED INDIVIDUALS. 

24 (a) ASSIGNMENT AND ALIENATION.—Under regula25 tions which shall be prescribed by the Executive Director, 


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1 rules relating to assignment and alienation applicable 

2 under chapter 84 of title 5, United States Code, with re3 spect to amounts held in accounts in the Thrift Savings 

4 Fund shall apply with respect to amounts held in Lifetime 

5 Savings Accounts in the ASPIRE Fund. 

6 (b) TREATMENT OF ACCOUNTS OF DECEASED INDI7 VIDUALS.—In the case of a deceased account holder of a 

8 Lifetime Savings Account which has an account balance 

9 greater than zero, upon receipt of notification of such indi10 vidual’s death, the Executive Director shall close the ac11 count and shall transfer the balance in such account to 

12 the Lifetime Savings Account of such account holder’s 

13 surviving spouse or, if there is no such account of a sur14 viving spouse, to the duly appointed legal representative 

15 of the estate of the deceased account holder, or if there 

16 is no such representative, to the person or persons deter17 mined to be entitled thereto under the laws of the domicile 

18 of the deceased account holder. 

19 SEC. 11. ACCOUNTS DISREGARDED IN DETERMINING ELIGI20 BILITY FOR FEDERAL BENEFITS. 

21 Amounts in any Lifetime Savings Account shall not 

22 be taken into account in determining any individual’s or 

23 household’s financial eligibility for, or amount of, any ben24 efit or service, paid for in whole or in part with Federal 

25 funds, including student financial aid. 


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1 SEC. 12. REPORTS. 

2 The Executive Director, in consultation with the Sec3 retary of the Treasury, shall annually transmit a written 

4 report to the Congress. Such report shall include— 

5 (1) a detailed description of the status and op6 eration of the ASPIRE Fund and the management 

7 of the Lifetime Savings Accounts, and 

8 (2) a detailed accounting of the administrative 

9 expenses in carrying out this Act, including the ratio 

10 of such administrative expenses to the balance of the 

11 ASPIRE Fund and the methodology adopted by the 

12 Executive Director for allocating such expenses 

13 among the Lifetime Savings Accounts. 

14 SEC. 13. PROGRAMS FOR PROMOTING FINANCIAL LIT15 ERACY. 

16 The Secretary of the Treasury, in coordination with 

17 the Financial Literacy and Education Commission, shall 

18 develop programs to promote the financial literacy of ac19 count holders of Lifetime Savings Accounts and the legal 

20 guardians of such account holders who have the rights 

21 with respect to such accounts under section 3(h). 

Æ 


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