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.
‘‘(B) 
REPAYMENT
OF
CONTRIBUTION 
LOAN.— 
‘‘(i) IN
GENERAL.—On the date on 
which an individual described in section 
251(a) attains age 30 and on such date in 
each succeeding calendar year (as nec-
essary), the Federal Retirement Thrift In-
vestment Board shall transfer from the 
KidSave Account of such individual to the 
Federal Old-Age and Survivors Insurance 
Trust Fund an amount equal to the least 
of the following amounts: 
‘‘(I) 20 percent of the applicable 
amount. 
‘‘(II) 20 percent of the balance in 
such KidSave Account. 
‘‘(III) An amount equal to the 
excess of the applicable amount over 
the aggregate amount deducted under 
this clause in all preceding calendar 
years with respect to such individual. 
‘‘(ii) APPLICABLE AMOUNT.—With re-
spect to any individual described in clause 
(i), the applicable amount is equal to the 
amount transferred by the Secretary of the
Treasury to such KidSave Account under 
paragraph (1)(A). 
‘‘(c) TREATMENT OF MINORS AND INCOMPETENT IN-
DIVIDUALS.— 
‘‘(1) DESIGNATIONS.—Any designation under 
subsection (b)(2) to be made by a minor, or an indi-
vidual mentally incompetent or under other legal dis-
ability, may be made by the person who is con-
stituted guardian or other fiduciary by the law of 
the State of residence of the individual or is other-
wise legally vested with the care of the individual or 
his estate. 
‘‘(2) DISTRIBUTIONS.—Payment under this 
part due a minor, or an individual mentally incom-
petent or under other legal disability, may be made 
to the person who is constituted guardian or other 
fiduciary by the law of the State of residence of the 
claimant or is otherwise legally vested with the care 
of the claimant or his estate. 
‘‘(3) OTHER
PERSONS
DESIGNATED.—In any 
case in which a guardian or other fiduciary of the 
individual under legal disability has not been ap-
pointed under the law of the State of residence of 
the individual, if any other person, in the judgment 
of the Commissioner, is responsible for the care of
such individual, any designation under subsection 
(b)(2) which may otherwise be made by such indi-
vidual may be made by such person, any payment 
under this part which is otherwise payable to such 
individual may be made to such person, and the pay-
ment of an annuity payment under this part to such 
person bars recovery by any other person. 
‘‘TREATMENT OF THRIFT SAVINGS FUND 
‘‘SEC. 253. For purposes of subchapter III of chapter 
84 of title 5, United States Code, the KidSave Accounts 
established in the Thrift Savings Fund under section 251 
shall be separately maintained and accounted for by the 
Federal Retirement Thrift Investment Board from the ac-
counts established under such subchapter in such Fund.’’. 
SEC. 3. CONFORMING AMENDMENTS. 
(a) AMENDMENTS RELATING TO ROLLOVERS.— 
(1) Section 402(c)(1) of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following new sentence: ‘‘For purposes of the pre-
ceding sentence, a rollover contribution to a KidSave 
Account under section 252(b)(1)(B)(ii) of the Social 
Security Act with respect to an employee who is a 
parent or grandparent of the beneficiary of such ac-
count shall be treated as a distribution to such em-
ployee.’’.