Q: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
SECTION 1. SHORT TITLE.

This Act may be cited as the ''Social Security KidSave Accounts
Act''.

SEC. 2. SOCIAL SECURITY KIDSAVE ACCOUNTS.

(a) In General.--Title II of the Social Security Act (42 U.S.C. 401
et seq.) is amended--
(1) by inserting before section 201 the following:

''Part A--Insurance Benefits'';

and
(2) by adding at the end the following:

''Part B--KidSave Accounts

''establishment of kidsave accounts

''Sec. 251. (a) In General.--The Commissioner of Social Security,
through the Federal Retirement Thrift Investment Board, shall establish
in the name of each individual born on or after January 1, 2001, a
KidSave Account in the Thrift Savings Fund under subchapter III of
chapter 84 of title 5, United States Code, upon the later of--
''(1) the date of enactment of this part; or
''(2) the date of the issuance of a Social Security account
number under section 205(c)(2) to such individual.
''(b) Identification of Account.--The KidSave Account shall be
identified to the account holder by means of the account holder's
Social Security account number.

''treatment of kidsave accounts

''Sec. 252. (a) In General.--For purposes of this part, except as
provided in subsection (b), a KidSave Account described in subsection
(a) shall be treated in the same manner as an account in the Thrift
Savings Fund under subchapter III of chapter 84 of title 5, United
States Code.
''(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
subparagraph (B), the Secretary of the Treasury
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 subsection (a).
''(ii) Adjustment for inflation.--For any
calendar year after 2008, the dollar amount
under clause (i) shall be increased by the
cost-of-living adjustment determined under
section 215(i) for the calendar year.
''(B) Other contributions.--
''(i) Contribution limit.--The aggregate
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 without regard to the amount
of the contribution 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 described 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.
''(iii) No contributions past the age of
18.--No contribution (including rollover
contribution) may be made to a KidSave Account
of an individual in any year after the year in
which such individual attains the age of 19.
''(iv) Direct deposits.--The Secretary of
the Treasury shall, under regulations, provide
for the direct deposit of any overpayment of
Federal tax of an individual or of a parent or
grandparent of such individual as a
contribution to the KidSave Account of such
individual.
''(2) Designations regarding kidsave account investments.--
''(A) Initial designations of investment fund.--A
person described in subsection (c) shall, on behalf of
the individual described in section 251(a), designate 1
or more investment 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 number.
''(B) Default designation.--In the absence of any
designation under subparagraph (A), the contributions
by or on behalf of an individual described in section
251(a) shall be deposited--
''(i) 60 percent in the Common Stock Index
Investment Fund established under 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 individual who
has attained age 18 or a person described in subsection
(c) on behalf of such individual may change 1 or more
investment designations for a KidSave Account of such
individual at the same time and in the same manner 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 this title; 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 necessary), the Federal
Retirement Thrift Investment 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 respect to
any individual described in clause (i), the
applicable amount is equal to the amount of the
loan contribution under paragraph (1)(A)
determined for the first calendar year
described in such clause for KidSave Accounts
established in such year.
''(c) Treatment of Minors and Incompetent Individuals.--
''(1) Designations.--Any designation under subsection
(b)(2) to be made by a minor, or an individual mentally
incompetent or under other legal disability, may be made by the
person who is constituted guardian or other fiduciary by the
law of the State of residence of the individual or is otherwise
legally vested with the care of the individual or his estate.
''(2) Distributions.--Payment under this part due a minor,
or an individual mentally incompetent 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 appointed 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 individual 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 payment
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 VIII 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 accounts established under such subchapter in such Fund.''.
(b) Conforming Amendments Regarding Rollovers.--
(1) Section 402(c)(5) of the Internal Revenue Code of 1986
is amended by striking ''(i) or (ii)'' and inserting ''(i),
(ii), or (v)''.
(2) Section 402(c)(8)(B) of such Code is amended by
striking ''and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting '', and'', and
by adding at the end the following new clause:
''(v) a KidSave Account established under
section 251(a) of the Social Security Act.''.
(3) Section 408(d)(3)(A)(i) of such Code is amended by
inserting ''or a KidSave Account established under section
251(a) of the Social Security Act'' after ''contract)''.
A:
Requires the Secretary of the Treasury to transfer from the Federal Old- Age and Survivors Insurance Trust Fund to each account holder's KidSave Account: (1) $2,000, on the date such individual's KidSave Account is established; plus (2) other, including rollover, contributions, by or on behalf of the individual, the aggregate amount of which in the case of any individual below age 19 is capped at $500 for any taxable year. Provides for the treatment of distributions.
Amends the Internal Revenue Code to exclude from gross income any rollovers into a KidSave Account.