‘‘(b) EXCEPTIONS.— 
‘‘(1) CONTRIBUTION RULES.— 
‘‘(A) LOAN CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—In addition to any 
contributions to a KidSave Account by or 
on behalf of an individual described in sub-
paragraph (B), the Secretary of the Treas-
ury shall transfer $2,000 to such Account 
from the Federal Old-Age and Survivors 
Insurance Trust Fund on the date of the 
establishment of such Account under sub-
section (a). 
‘‘(ii) ADJUSTMENT FOR INFLATION.— 
For any calendar year after 2015, the dol-
lar amount under clause (i) shall be in-
creased by the cost-of-living adjustment de-
termined under section 215(i) for the cal-
endar year. 
‘‘(B) OTHER CONTRIBUTIONS.— 
‘‘(i) CONTRIBUTION LIMIT.—The ag-
gregate amount of contributions by or on 
behalf of an individual (including rollover 
contributions) for any taxable year to the 
KidSave Account of such individual shall 
not exceed $500 for such year (determined 
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without regard to the amount of the con-
tribution made pursuant to subparagraph 
(A)). 
‘‘(ii) ROLLOVER
CONTRIBUTIONS.— 
No rollover contribution may be made to a 
KidSave Account of an individual unless it 
is from an eligible retirement plan de-
scribed in clause (i), (ii), or (iii) of section 
402(c)(8)(B) of the Internal Revenue Code 
of 1986 of such individual or of a parent 
or grandparent of such individual. For 
purposes of chapters 12 and 13 of the In-
ternal Revenue Code of 1986 (relating to 
gift tax and tax on generation-skipping 
transfers), in no event shall a rollover con-
tribution under this clause be treated as a 
taxable gift. 
‘‘(iii) NO CONTRIBUTIONS PAST THE 
AGE
OF
18.—No contribution (including 
rollover contribution) may be made to a 
KidSave Account of an individual after the 
date on which such individual attains the 
age of 19. 
‘‘(iv) DIRECT
DEPOSITS.—The Sec-
retary of the Treasury shall, under regula-
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tions, provide for the direct deposit of any 
overpayment of Federal tax of an indi-
vidual or of a parent or grandparent of 
such individual as a contribution to the 
KidSave Account of such individual. 
‘‘(2) DESIGNATIONS REGARDING KIDSAVE AC-
COUNT INVESTMENTS.— 
‘‘(A) INITIAL DESIGNATIONS OF INVEST-
MENT FUND.—A person described in subsection 
(c) shall, on behalf of the individual described 
in section 251(a), designate 1 or more invest-
ment funds (established under section 8438 of 
title 5, United States Code) for the KidSave 
Account to which contributions by or on behalf 
of such individual are to be deposited. Such 
designation shall be made on the application for 
such individual’s social security account num-
ber. 
‘‘(B) DEFAULT DESIGNATION.—In the ab-
sence of any designation under subparagraph 
(A), the contributions by or on behalf of an in-
dividual described in section 251(a) shall be de-
posited— 
‘‘(i) 60 percent in the Common Stock 
Index Investment Fund established under 
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section 8438(b)(1)(C) of title 5, United 
States Code; 
‘‘(ii) 20 percent in the Fixed Income 
Investment Fund established under section 
8438(b)(1)(B) of such title; and 
‘‘(iii) 20 percent in the Government 
Securities Investment Fund established 
under section 8438(b)(1)(A) of such title. 
‘‘(C) CHANGES IN DESIGNATIONS.—An in-
dividual who has attained age 18 or a person 
described in subsection (c) on behalf of such in-
dividual may change 1 or more investment des-
ignations for a KidSave Account of such indi-
vidual at the same time and in the same man-
ner as provided under subchapter III of chapter 
84 of such title. 
‘‘(3) DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), distributions may only be 
made from a KidSave Account of an individual 
on or after the earlier of— 
‘‘(i) the date on which the individual 
begins receiving benefits under part A; or 
‘‘(ii) the date of the individual’s 
death. 
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