,,ii #aahth ,,congress #b;d ,session ,s4 #cgaf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ca1 #bjbd,mr4 ,casey 7for himself1 ,mr4 ,wyden1 ,mr4 ,schumer1 ,ms4 ,smith1 ,mr4 ,fetterman1 and ,mr4 ,blumenthal7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to create children's lifetime savings accounts1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the #dja,kids ,savings ,account ,act of #bjbd4 #b4 #dja,kids ,account ,programs 7a7 ,in general ,section #ebi of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7f7 as subsection 7g7 and by inserting after subsection 7e7 the following new subsection3 7f7 #dja,kids ,account ,programs 7#a7 ,in general ,a qualified tuition program shall not be treated as failing to meet the requirements of this section solely because such program includes a #dja,kids ,account ,program4 7#b7 #dja,kids ,account ,program ,for purposes of this section-- 7,a7 ,in general ,the term #dja,kids ,account ,program means a program established and maintained by a ,state or agency or instrumentality thereof which-- 7i7 establishes a savings account 7referred to in this subsection as a #dja,kids ,savings ,account7 which meets the requirements of this subsection on behalf of every eligible individual as of the later of-- 7,i7 birth or naturalization1 or 7,,ii7 establishment of the program under this section1 including eligible individuals who are in foster care1 in coordination with the applicable ,state agency1 and notifies such individuals of the establishment of such accounts1 7ii7 requires the assets of each #dja,kids ,savings ,account established under the program to be held by a person designated by the ,state or agency or instrumentality1 7iii7 within the limitations of paragraph 7#c71 permits contributions to be made periodically to such #dja,kids ,savings ,accounts by direct deposit through payroll deduction or by electronic means1 and by methods that provide access for people with limited access to the financial system1 7iv7 provides for the annual deposit under section #c7;b77#d7 of the #dja,kids ,savings ,account ,act of #bjbd and the matching contributions under section #c7;b77#e7 of such ,act to be made to such #dja,kids ,savings ,accounts1 if applicable1 7v7 permits distributions and rollovers from such #dja,kids ,savings ,accounts as provided in paragraph 7#d71 7vi7 except as provided in the second sentence of this subparagraph1 prohibits multiple accounts from being established for the same individual1 and includes-- 7,i7 procedures to consolidate multiple accounts established for the same individual and return excess contributions on an annual basis1 with notice provided to the parent or guardian of the individual 7or1 if appropriate1 to the individual7 and a procedure for resolution of disputes1 and 7,,ii7 procedures by which all accounts established are reported to the ,secretary to ensure compliance with this clause1 7vii7 permits1 not less frequently than once per year1 for an account to be moved from one ,state program to another or between a ,state program and the ,federal #dja,kids ,account ,program1 and 7viii7 ensures that such #dja,kids ,savings ,accounts are invested in accordance with prudent investment strategies which are in the best interest of eligible individuals4 7,b7 ,collective account ,for purposes of subparagraph 7,a71 a ,state may establish a collective account for all eligible individuals in the ,state which is owned by the ,state1 but only if-- 7i7 the ,state program provides for separate accounting for each such individual1 7ii7 allows such account to receive contributions described in subparagraph 7,a77iv71 and 7iii7 if such account does not permit contributions by persons other than the ,state or the ,secretary1 permits for the establishment of a linked account under the program which accepts contributions by such other persons as provided in subparagraph 7,a77iii7 and which is aggregated for purposes of any limitation under this section with the amounts credited to the eligible individual in the ,state collective account4 7,c7 ,certification ,a program of a ,state shall not be treated as a #dja,kids ,account ,program unless such program is certified by the ,secretary as meeting the requirements of this subsection4 7#c7 ,limitations 7,a7 ,contribution minimum ,a #dja,kids ,account ,program may establish minimum amounts for initial and additional contributions to a #dja,kids ,savings ,account1 not to exceed #aj4 7,b7 ,contribution limitation 7i7 ,in general ,contributions to a #dja,kids ,savings ,account under a #dja,kids ,account ,program during any taxable year 7other than contributions made under section #c7;b77#d7 or #c7;b77#e7 of the #dja,kids ,savings ,account ,act of #bjbd7 shall not be accepted to the extent such contributions exceed #b1ejj4 7ii7 ,inflation adjustment ,in the case of any calendar year after #bjbd1 the #b1ejj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount2 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year1 determined by substituting calendar year #bjbc for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 ,if any dollar amount as increased under the preceding sentence is not a multiple of #e1 such dollar amount shall be rounded to the nearest multiple of #e4 7,c7 ,limitation on participation ,within a reasonable amount of time before the date an eligible individual attains age #ag1 the program shall provide notice to the eligible individual and the parent or guardian of the eligible individual that-- 7i7 no deposits under paragraph 7#d7 or 7#e7 of section #c7;b7 of the #dja,kids ,savings ,account ,act of #bjbd will be made for calendar years after the year in which the individual attains age #ah1 7ii7 any contributions made by any person after the date the individual attains age #ah will be taken into account as provided in subparagraph 7,f71 and 7iii7 the individual may elect to have the account balance rolled over or distributed as provided1 and at the time specified1 in paragraph 7#d74 7,d7 ,state contributions ,the ,state establishing or maintaining a #dja,kids ,account ,program may make contributions under such program to accounts established or maintained thereunder4 ,such contributions-- 7i7 shall not be taken into account for purposes of subparagraph 7,b71 and 7ii7 may be limited to eligible individuals residing in the ,state at the time the contribution is made4 7,e7 ,coordination with amounts contributed for qualified higher education expenses 7i7 ,in general ,contributions to a qualified tuition program which are not contributed to a #dja,kids ,account ,program shall not be taken into account under subparagraph 7,b71 and contributions to a #dja,kids ,account ,program shall not be taken into account for purposes of subsection 7b77#f74 7ii7 ,transfers from qualified tuition program ,amounts contributed to a qualified tuition program 7other than to a #dja,kids ,account ,program which is part of such qualified tuition program7 may be transferred to a #dja,kids ,savings ,account established under a #dja,kids ,account ,program on behalf of the designated beneficiary1 subject to the limitation of subparagraph 7,b74 ,for purposes of such limitation1 any such transfer in a taxable year shall be aggregated with any other contributions to such #dja,kids ,account program 7other than contributions made under section #c7;b77#d7 or #c7;b77#e7 of the #dja,kids ,savings ,account ,act of #bjbd74 7,f7 ,amounts contributed after age #ah ,any contribution by any person to a #dja,kids ,savings ,account after the date the individual on whose behalf the account is established attains age #ah shall be treated for purposes of section #djh;,a7c77#b7 as a contribution to a ,roth ,,ira maintained for the benefit of the individual1 and no such contribution shall be accepted to the extent such contribution1 when aggregated with all contributions for the taxable year to all ,roth ,i,r,as maintained for the benefit of the individual1 exceeds the limitation of section #djh;,a7c77#b74 7#d7 ,distributions 7,a7 ,in general ,amounts in a #dja,kids ,savings ,account under a #dja,kids ,account ,program-- 7i7 if such amounts are held in a collective account owned by the ,state1 may be rolled over into a linked account under the program which accepts contributions by persons other than the ,state1 or merged with such an account previously established1 after the date the individual on whose behalf the account was established attains age #ah 7or earlier as permitted by the ,state program71 and 7ii7 after the date the individual on whose behalf the account was established attains age #ah1 may be-- 7,i7 distributed to such individual in cash1 7,,ii7 transferred directly to an eligible educational institution1 mortgagee1 lender1 or guarantor with respect to an expense described in subparagraph 7,e77i71 or 7,,iii7 contributed in a direct transfer to an ,,able account 7as defined in section #ebi;,a7e77#f77 or a ,roth ,,ira of the individual1 and 7iii7 if the individual whose behalf the account was established does not elect to receive any such distribution1 shall remain in the account4 7,b7 ,treatment of distributions ,no amount shall be includible in gross income under subsection 7c77#c77;,a7 by reason of any cash distribution from an account under a #dja,kids ,account ,program which is made after the date the individual on whose behalf such account was established attains age #ah1 to the extent such distribution does not exceed the qualified expenses of the individual which are paid or incurred during the taxable year of the distribution4 7,c7 ,treatment of rollovers 7i7 ,,able accounts ,any contribution from a #dja,kids ,account ,program to an ,,able account pursuant to subparagraph 7,a77ii77,,iii7 shall be treated-- 7,i7 as a contribution from another ,,able account as described in section #ebi;,a7c77#a77;,c77i71 and 7,,ii7 as having been contributed to such ,,able account in a direct trustee-to-trustee transfer within #fj days of the distribution for purposes of such section4 7ii7 ,roth ,i,r,as ,any contribution from a #dja,kids ,account ,program to a ,roth ,,ira pursuant to subparagraph 7,a77ii77,,iii7 shall be treated-- 7,i7 as a contribution from another ,roth ,,ira as described in section #djh;,a7e77#a77;,a71 and 7,,ii7 as having been contributed to such ,roth ,,ira in a direct trustee-to-trustee transfer within #fj days of the distribution for purposes of section #djh7;d77#c71 and shall not be taken into account under subsection 7c77#c77;,e74 7,d7 ,additional tax on nonqualified use 7i7 ,in general ,the tax imposed by this chapter for the taxable year shall be increased by an amount equal to #aj percent of the amount of any distribution from an account under a #dja,kids ,account ,program during the taxable year which is not described in subparagraph 7,a77i71 7,a77ii77,,ii71 7,a77ii77,,iii71 or 7,b74 7ii7 ,distributions from ,roth ,,ira ,if any amount is contributed to a ,roth ,,ira in a rollover distribution from an account under a #dja,kids ,account ,program pursuant to subparagraph 7,a77ii77,,iii71 the tax imposed by this title for the taxable year shall be increased by an amount equal to #aj percent of the amount of any distribution from such ,roth ,,ira which is made within the #e-year period beginning on the date of the rollover-- 7,i7 to the extent that such distribution from the ,roth ,,ira1 when aggregated with all other distributions from such ,roth ,,ira during such #e-year period1 does not exceed the amount contributed in such rollover distribution1 and 7,,ii7 unless the qualified expenses of the individual on whose behalf the account was established paid or incurred during the taxable year of the distribution are equal to or exceed the amount of such distribution4 7iii7 ,coordination rule ,subsection 7c77#f7 shall not apply to any amount with respect to which a tax is imposed under clause 7i7 or 7ii74 7iv7 ,federal #dja,kids ,account ,program 7,i7 ,in general ,the tax imposed by this chapter for the taxable year shall be increased by an amount equal to #aj percent of the amount of any distribution during the taxable year from an account under the ,federal #dja,kids ,account ,program established by section #c of the #dja,kids ,savings ,account ,act of #bjbd which is not described in subsection 7c77#a77;,a77ii71 7c77#a77;,a77iii71 or 7c77#b77;,a7 of section #c of such ,act4 7,,ii7 ,distributions from ,roth ,,ira ,the tax imposed by clause 7ii7 shall apply to a rollover distribution from an account under the ,federal #dja,kids ,account program pursuant to section #c7;c77#a77;,a77iii7 of the #dja,kids ,savings ,account ,act of #bjbd in the same manner as a rollover distribution from an account under a #dja,kids ,account ,program pursuant to subparagraph 7,a77ii77,,iii74 7,e7 ,qualified expenses ,for purposes of this paragraph-- 7i7 ,in general ,the term qualified expenses means amounts paid or incurred by an individual-- 7,i7 as payment or collateral required for a loan guaranteed by the ,small ,business ,administration or the ,united ,states ,department of ,agriculture ,rural ,development or other small business loan as determined by the ,secretary1 pursuant to the rules determined under clause 7iii71 7,,ii7 as qualified acquisition costs 7as defined in section #gb7t77#h77;,c77 with respect to a residence intended to be the primary residence of the individual1 7,,iii7 for qualified higher education expenses of the individual at an eligible educational institution1 or for other post-secondary educational expenses in an accredited degree-granting program or expenses for obtaining a trade certificate1 as provided by the ,secretary in consultation with the ,secretary of ,education1 or 7,,iv7 after the date the individual on whose behalf the account was established attains age #ei1 for any purpose4 7ii7 ,certification ,except in the case of qualified expenses described in clause 7i77,,iv71 the individual shall certify on the return of tax1 in such manner as the ,secretary shall prescribe1 the qualified expenses paid or incurred by the individual during the taxable year4 7iii7 ,small business loans ,the ,secretary shall prescribe rules or other guidance1 or shall certify a process1 for determining whether a loan shall be taken into account under clause 7i77,i74 7#e7 ,eligible individual ,for purposes of this subsection-- 7,a7 ,in general ,the term eligible individual means a child who has not attained age #ah and is a citizen of the ,united ,states4 7,b7 ,treatment as designated beneficiary ,the rules of subsections 7a7 through 7e7 shall be applied 7except as otherwise provided in this subsection7 by treating the eligible individual on whose behalf a #dja,kids ,savings ,account under a #dja,kids ,account ,program is established as the designated beneficiary with respect to such account4 7#f7 ,state ,for purposes of this subsection1 the term ,state includes the ,district of ,columbia1 any possession of the ,united ,states1 and any ,indian tribe 7as defined in section #de;,a7c77#f774 7#g7 ,accounts may not be assigned ,an account established on behalf of an individual under a #dja,kids ,account ,program may not be pledged or assigned to any other person4 7#h7 ,third-party contractors ,a ,state may contract with a third party for purposes of administration of a #dja,kids ,account ,program1 including record keeping and account investment4 7#i7 ,account management 7,a7 ,in general ,except as provided in subparagraph 7,b7-- 7i7 the eligible individual on whose behalf a #dja,kids ,savings ,account under a #dja,kids ,account ,program is established1 after the date the individual attains age #ah1 shall have sole discretion over the distribution of amounts in the account1 and 7ii7 in the case of an account not owned and controlled by a ,state1 such eligible individual1 after the date the individual attains age #ah1 and the parent or guardian of such individual before such date1 may exercise control over the investment of account assets other than amounts attributable to deposits under paragraph 7#d7 or 7#e7 of section #c7;b7 of the #dja,kids ,savings ,account ,act of #bjbd 7including any gain or loss attributable thereto74 7,b7 ,death of account beneficiary ,in the event the individual on whose behalf a #dja,kids ,savings ,account under a #dja,kids ,account ,program is established dies before attaining age #ah-- 7i7 any amounts attributable to deposits under paragraph 7#d7 or 7#e7 of section #c7;b7 of the #dja,kids ,savings ,account ,act of #bjbd 7including any gain or loss attributable thereto7 shall be returned to the ,treasury1 and 7ii7 the successor owner or beneficiary of the account shall withdraw all amounts not returned under subparagraph 7,a7 not later than the last day of the calendar year after the calendar year in which the death occurs4 ,amounts withdrawn pursuant to this subparagraph shall not be included in gross income of the deceased individual or the successor owner or beneficiary to the extent such amounts are attributable to contributions to the account 7and not to gain attributable thereto74 4 7b7 ,conforming amendments 7#a7 ,reports ,paragraph 7#a7 of section #ebi7;d7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 including a #dja,kids ,account ,program under such qualified tuition program1 after the qualified tuition program4 7#b7 ,reports regarding rollover distributions ,paragraph 7#b7 of section #ebi7;d7 of such ,code is amended-- 7,a7 by striking subsection 7c77#c77;,e7 and inserting subsection 7c77#c77;,e7 or 7f77#d77;,c71 7,b7 by striking ,roth ,,ira and inserting ,roth ,,ira or ,,able account1 7,c7 by striking the qualified tuition program and inserting the qualified tuition program or #dja,kids ,account ,program1 and 7,d7 by striking subsection 7c77#c77;,a7 and inserting subsection 7c77#c77;,e7 or 7f77#d77;,c74 7#c7 ,qualified use ,clause 7i7 of section #ebi7;c77#c77;,c7 of such ,code is amended-- 7,a7 by striking or at the end of subclause 7,,ii71 7,b7 by redesignating subclause 7,,iii7 as subclause 7,,iv71 7,c7 by inserting after subclause 7,,ii7 the following new subclause3 7,,iii7 to a #dja,kids ,savings ,account under a #dja,kids ,account ,program established on behalf of the designated beneficiary under subsection 7f7 or section #c of the #dja,kids ,savings ,account ,act of #bjbd1 or 1 and 7,d7 by striking ,subclause 7,,iii7 shall not apply in the second sentence and inserting ,subclause 7,,iii7 shall not apply to so much of a distribution which1 when aggregated with other contributions as provided in subsection 7f77#c77;,e77ii71 exceeds the limitation under subsection 7f77#c77;,b74 ,subclause 7,,iv7 shall not apply4 7c7 ,effective date 7#a7 ,in general ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 7#b7 ,existing programs ,a qualified tuition program 7as defined in section #ebi of the ,internal ,revenue ,code of #aihf7 of a ,state which includes a savings account program shall be treated for taxable years beginning after the date of the enactment of this ,act as meeting the requirements of section #ebi7;f7 of the ,internal ,revenue ,code of #aihf1 as added by this ,act1 if such qualified tuition program 7as amended1 if necessary7 meets such requirements for the first taxable year beginning more than #a year after such date of enactment4 7d7 ,regulations ,the ,secretary of the ,treasury 7or such ,secretary's delegate7 shall issue such regulations or other guidance as is necessary to implement ,state #dja,kids ,account ,programs1 including guidance-- 7#a7 regarding the personally identifying information which is necessary for ,states to establish accounts on behalf of individuals born in the ,state1 7#b7 for informing individuals of accounts established on their behalf1 and 7#c7 for processing accounts of deceased individuals and returning ,federal contributions to the ,treasury pursuant to section #ebi7;f77#i77;,b7 of the ,internal ,revenue ,code of #aihf4 #c4 ,establishment of ,federal #dja,kids ,account ,program 7a7 ,establishment of program ,the ,secretary of the ,treasury shall1 not later than ,december #ca1 #bjbd1 establish a permanent program1 to be known as the ,federal #dja,kids ,account ,program1 which meets the requirements of this section to-- 7#a7 establish and maintain a savings account 7referred to in this section as a #dja,kids ,savings ,account7 meeting the requirements of subsections 7b7 and 7c7 on behalf of eligible individuals whose ,state does not maintain a #dja,kids ,account ,program pursuant to section #ebi7;f7 of the ,internal ,revenue ,code of #aihf1 and 7#b7 make contributions pursuant to paragraphs 7#d7 and 7#e7 on behalf of eligible individuals to such #dja,kids ,savings ,accounts and to accounts under any such ,state #dja,kids ,account ,program4 7b7 ,program specifications 7#a7 ,in general 7,a7 #dja,kids ,savings ,accounts ,the ,federal #dja,kids ,account ,program established under this section shall-- 7i7 establish on behalf of each eligible individual whose ,state does not maintain a #dja,kids ,account ,program pursuant to section #ebi7;f7 of the ,internal ,revenue ,code of #aihf a #dja,kids ,savings ,account which meets the requirements of this subsection and subsection 7c7 on behalf of the individual as of #a year after the later of-- 7,i7 birth or naturalization2 or 7,,ii7 establishment of the program under this section1 and notify such individuals of the establishment of such accounts2 7ii7 require the assets of each #dja,kids ,savings ,account established under the program to be held by the designated custodian2 7iii7 within the limitations of paragraph 7#c71 permit contributions to be made periodically to such #dja,kids ,savings ,accounts by direct deposit through payroll deduction or by electronic means1 and by methods that provide access for people with limited access to the financial system2 7iv7 provide for the annual deposit under paragraph 7#d7 and the matching contributions under paragraph 7#e7 to be made to such #dja,kids ,savings ,accounts1 and to #dja,kids ,savings ,accounts under such #dja,kids ,account ,programs established and maintained by ,states1 if applicable2 7v7 as provided in subsection 7c71 permit distributions and rollovers from such #dja,kids ,savings ,accounts after the individual on whose behalf the account is established attains age #ah2 7vi7 include procedures to consolidate multiple accounts established for the same individual1 including across ,states1 and return excess contributions on an annual basis1 with notice provided to the parent or guardian of the individual 7or1 if appropriate1 to the individual7 and a procedure for resolution of disputes2 7vii7 permit1 not less frequently than once per year1 for an account to be moved between a ,state program and the ,federal #dja,kids ,account ,program2 and 7viii7 ensure that such #dja,kids ,savings ,accounts are invested in accordance with subsection 7e74 7,b7 ,regulations1 etc ,the ,secretary of the ,treasury shall have authority to promulgate such regulations1 rules1 and other guidance as are necessary to implement the ,federal #dja,kids ,account ,program1 and are consistent with this section and section #ebi7;f7 of the ,internal ,revenue ,code of #aihf1 including-- 7i7 rules regarding the provision of periodic notices to individuals and parents or guardians of individuals1 as appropriate1 on whose behalf accounts are established under the program1 including information on account balances and activity2 7ii7 rules for making the deposit under paragraph 7#d77;,a7 in the case of taxpayers who are not required to file an income tax return2 7iii7 rules for recapture of improperly made deposits under paragraphs 7#d7 and 7#e72 and 7iv7 rules regarding beneficiary designation in the case of the death of the individual on whose behalf an account was established4 7#b7 ,program for deposits made with ,federal partners ,the ,secretary of the ,treasury may1 in fulfillment of subparagraph 7,a77iii71 establish a program which would allow grocery stores1 pharmacies1 banks1 and other similar businesses to partner with the ,federal ,government to accept cash deposits from customers and to remit such deposits to the ,treasury for payment into #dja,kids ,savings ,accounts under the ,federal #dja,kids ,account ,program4 7#c7 ,limitations 7,a7 ,contribution minimum ,the ,secretary of the ,treasury may establish minimum amounts for initial and additional contributions to a #dja,kids ,savings ,account under the ,federal #dja,kids ,account ,program1 not to exceed #aj4 7,b7 ,contribution limitation ,contributions to a #dja,kids ,savings ,account under the ,federal #dja,kids ,account ,program during any taxable year 7other than contributions made under paragraphs 7#d7 and 7#e77 shall not be accepted to the extent such contributions exceed #b1ejj4 7,c7 ,limitation on participation ,within a reasonable amount of time before the date an eligible individual attains age #ag1 the designated custodian shall provide notice to the eligible individual and the parent or guardian of the eligible individual that-- 7i7 no deposits under paragraph 7#d7 or 7#e7 will be made for calendar years after the year in which the individual attains age #ah2 7ii7 any contributions made by any person after the date the individual attains age #ah will be taken into account as provided in section #ebi7;f77#c77;,f7 of the ,internal ,revenue ,code of #aihf2 and 7iii7 the individual 7or1 as provided1 the individual's parent or guardian7 may elect to have the account balance rolled over or distributed as provided1 and at the time specified1 in subsection 7c74 7#d7 ,annual deposit 7,a7 ,in general 7i7 ,annual amount ,within a reasonable amount of time 7not to exceed #fj days7 after the filing of the return of tax for each taxable year by a taxpayer claiming an eligible individual as a dependent1 the ,secretary of the ,treasury shall deposit #ejj into the #dja,kids ,savings ,account established for such individual under the ,federal #dja,kids ,account ,program or a #dja,kids ,account ,program established and maintained by a ,state4 7ii7 ,additional amount for earned income credit eligible families ,if a credit is allowable under section #cb of the ,internal ,revenue ,code of #aihf to the parent or guardian or an eligible individual for a taxable year1 clause 7i7 shall be applied by substituting #gej for #ejj4 7,b7 ,phaseout ,in the case of a taxpayer to whom subparagraph 7,a77ii7 does not apply1 the #ejj amount under subparagraph 7,a77i7 shall be reduced 7but not below zero7 by #aj for each #a1jjj 7or fraction thereof7 by which the taxpayer's modified adjusted gross income for the taxable year exceeds #ge1jjj 7#aej1jjj in the case of a joint return74 7,c7 ,married couples must file joint return ,if the taxpayer is married at the close of the taxable year1 subparagraph 7,a7 shall apply only if the taxpayer and the taxpayer's spouse file a joint return for the taxable year4 7,d7 ,deposit on behalf of children in foster care ,at an appropriate time each year as determined by the ,secretary of the ,treasury in coordination with the ,administration for ,children and ,families1 such ,secretary shall deposit #gej into the #dja,kids ,savings ,account established under the ,federal #dja,kids ,account ,program or a #dja,kids ,account ,program established and maintained by a ,state for any eligible individual in foster care1 in any ,state1 with respect to whom no deposit was made for such year under subparagraph 7,a74 7#e7 ,matching contributions for earned income credit eligible families ,if a credit is allowable under section #cb of the ,internal ,revenue ,code of #aihf to the parent or guardian or an eligible individual for a taxable year1 the ,secretary of the ,treasury shall deposit1 at the same time as the annual deposit under paragraph 7#d77;,a71 into the #dja,kids ,savings ,account established for such eligible individual under the ,federal #dja,kids ,account ,program or a #dja,kids ,account ,program established and maintained by a ,state an amount equal to so much of the contributions made by the parent or guardian of the eligible individual to such account during the preceding taxable year as does not exceed #bej4 ,such deposit shall be made in addition to the deposit under paragraph 7#d74 7#f7 ,designated custodian ,for purposes of this section1 the designated custodian is the person designated by the ,secretary of the ,treasury to act as custodian of the #dja,kids ,savings ,accounts established on behalf of participants in the ,federal #dja,kids ,account ,program4 7#g7 ,inflation adjustments 7,a7 ,in general ,in the case of any calendar year after #bjbd1 the #b1ejj amount in paragraph 7#c77;,b71 the #ejj amount in paragraphs 7#d77;,a71 7#d77;,b71 and 7#d77;,d71 the #gej amount in paragraphs 7#d77;,a7 and 7#d77;,d71 and the #bej amount in paragraph 7#e7 shall each be increased by an amount equal to-- 7i7 such dollar amount2 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 of the ,internal ,revenue ,code of #aihf for the calendar year1 determined by substituting calendar year #bjbc for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,if any dollar amount increased under subparagraph 7,a7 is not a multiple of #e1 such dollar amount shall be rounded to the nearest multiple of #e4 7#h7 ,accounts may not be assigned ,an account established on behalf of an individual under the ,federal #dja,kids ,account ,program may not be pledged or assigned to any other person4 7#i7 ,modified adjusted gross income ,for purposes of this subsection1 the term modified adjusted gross income means adjusted gross income 7as defined in section #fb of the ,internal ,revenue ,code of #aihf7 increased by-- 7,a7 any amount excluded from gross income under section #iaa of such ,code1 7,b7 any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax1 and 7,c7 an amount equal to the portion of the taxpayer's social security benefits 7as defined in section #hf7;d7 of such ,code7 which is not included in gross income under such section #hf for the taxable year4 7c7 ,distributions from #dja,kids ,savings ,account 7#a7 ,in general ,amounts in a #dja,kids ,savings ,account under the ,federal #dja,kids ,account ,program-- 7,a7 after the date the individual on whose behalf the account was established attains age #ah1 may be-- 7i7 distributed to such individual in cash1 7ii7 transferred directly to an eligible educational institution1 mortgagee1 lender1 or guarantor with respect to an expense described in section #ebi7;f77#d77;,e77i7 of the ,internal ,revenue ,code of #aihf1 or 7iii7 contributed in a direct transfer to an ,,able account 7as defined in section #ebi;,a7e77#f7 of the ,internal ,revenue ,code of #aihf7 or a ,roth ,,ira 7as defined in section #djh;,a of such ,code7 of the individual1 and 7,b7 if the individual whose behalf the account was established does not elect to receive any such distribution1 shall remain in the account4 7#b7 ,treatment of distributions 7,a7 ,in general ,no amount shall be includible in gross income for purposes of the ,internal ,revenue ,code of #aihf by reason of any cash distribution from an account under the ,federal #dja,kids ,account ,program which is made after the date the individual on whose behalf such account was established attains age #ah1 to the extent such distribution does not exceed the qualified expenses of the individual 7as defined in section #ebi7;f77#d77;,e7 of such ,code7 which are paid or incurred during the taxable year of the distribution4 7,b7 ,treatment of rollovers ,the rules of section #ebi7;f77#d77;,c7 of such ,code shall apply in the case of a rollover distribution described in paragraph 7#a77;,a77iii74 7d7 ,eligible individual ,for purposes of this section1 with respect to any calendar year1 the term eligible individual means a child who has not attained age #ah as of the last day of such calendar year and is a citizen of the ,united ,states4 7e7 ,investment of account assets ,the ,secretary of the ,treasury shall ensure that amounts in the ,federal #dja,kids ,account ,program are invested so as to maximize returns over the first #ah years of the life of an eligible individual on whose behalf a #dja,kids ,savings ,account is established under such program1 and shall reevaluate the investment of such amounts after an eligible individual attains age #ah to ensure amounts are available and growing for uses later in the individual's life4 ,the ,secretary of the ,treasury may1 in the ,secretary's discretion1 permit some or all eligible individuals to exercise control over the investment of account assets other than amounts attributable to deposits under paragraph 7#d7 or 7#e7 of subsection 7b7 7including any gain or loss attributable thereto74 7f7 ,reports 7#a7 ,in general ,the designated custodian shall make such reports regarding the ,federal #dja,kids ,account ,program to the ,secretary of the ,treasury and to individuals on whose behalf accounts are established under such program with respect to contributions1 distributions1 and such other matters as the ,secretary of the ,treasury may require4 ,the reports required by this paragraph shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the ,secretary of the ,treasury4 7#b7 ,rollover distributions ,in the case of any distribution described in subsection 7c77#a77;,a77iii71 the designated custodian shall provide a report to the trustee of the ,roth ,,ira or ,,able account to which the distribution is made4 ,such report shall be filed at such time and in such manner as the ,secretary of the ,treasury may require and shall include information with respect to the contributions1 distributions1 and earnings of the account under the ,federal #dja,kids ,account program as of the date of the distribution described in subsection 7c77#a77;,a77iii71 together with such other matters as the ,secretary of the ,treasury may require4 #d4 ,treatment of accounts under certain ,federal programs 7a7 ,account funds disregarded for purposes of certain other means-,tested ,federal programs ,notwithstanding any other provision of ,federal law that requires consideration of one or more financial circumstances of an individual1 for the purpose of determining eligibility to receive1 or the amount of1 any assistance or benefit authorized by such provision to be provided to or for the benefit of such individual1 any amount 7including earnings thereon7 in an individual's account established under a #dja,kids ,account ,program 7as defined in section #ebi7;f7 of the ,internal ,revenue ,code of #aihf7 or the ,federal #dja,kids ,account ,program pursuant to section #c1 any contributions to such account1 and any distribution 7or portion thereof7 shall be disregarded for such purpose with respect to any period during which such individual maintains1 makes contributions to1 or receives distributions from such account1 except that-- 7#a7 a distribution for qualified acquisition costs 7within the meaning of section #ebi7;f77#d77;,e77ii7 of such ,code7 shall not be so disregarded2 and 7#b7 any amount 7including such earnings7 in such account shall be considered a resource of the individual to the extent that such amount exceeds #ajj1jjj4 7b7 ,suspension of ,,ssi benefits during periods of excessive account funds 7#a7 ,in general ,the benefits of an individual under the supplemental security income program under title ,,xvi of the ,social ,security ,act shall not be terminated1 but shall be suspended1 by reason of excess resources of the individual attributable to an amount in the account of the individual established under a #dja,kids ,account ,program which is not disregarded under subsection 7a74 7#b7 ,no impact on ,medicaid eligibility ,an individual who would be receiving payment of such supplemental security income benefits but for the application of paragraph 7#a7 shall be treated for purposes of title ,,xix of the ,social ,security ,act as if the individual continued to be receiving payment of such benefits4 #e4 ,disclosure of taxpayer information1 etc 7a7 ,in general ,subsection 7l7 of section #fajc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#bc7 ,disclosure of return information for purposes of administration of #dja,kids ,account ,programs ,the ,secretary shall disclose to any officer or employee of the ,department of the ,treasury1 as necessary for the administration of the ,federal #dja,kids ,account ,program established under section #c7;a7 of the #dja,kids ,savings ,account ,act of #bjbd and the requirements of paragraphs 7#d7 and 7#e7 of section #c7;b7 of such ,act1 return information relating to taxpayer identity1 dependents1 adjusted gross income1 and whether the taxpayer has claimed the earned income credit under section #cb for the taxable year4 4 7b7 ,prohibition of redisclosure ,paragraph 7#c7 of section #fajc7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking or 7#ba7 and inserting 7#ba71 or 7#bc74 7c7 ,data sharing ,the ,secretary of the ,treasury shall enter into an agreement with the ,commissioner of ,social ,security1 the ,secretary of ,state1 and the ,director of the ,united ,states ,citizenship and ,immigration ,services to share data regarding births and naturalizations of children under the age of #ah solely for purposes of-- 7#a7 establishing accounts under the ,federal #dja,kids ,account ,program1 and 7#b7 making deposits pursuant to paragraphs 7#d7 and 7#e7 of section #c4 7d7 ,use of social security numbers ,section #bje7;c77#b77;,c7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dje7;c77#b77;,c77 is amended by adding at the end the following new clause3 7xiv7 ,the ,secretary of the ,treasury1 for purposes of the ,federal #dja,kids ,account ,program established under section #c7;a7 of the #dja,kids ,savings ,account ,act of #bjbd1 and any ,state that elects to establish a #dja,kids ,account ,program pursuant to section #ebi7;f7 of the ,internal ,revenue ,code of #aihf1 are authorized to collect and use the names and social security account numbers of individuals as required to establish and maintain such accounts4 4 #f4 ,treasury audit of ,state programs ,the ,secretary of the ,treasury is authorized-- 7#a7 to conduct audits of #dja,kids ,account ,programs established pursuant to section #ebi7;f7 of the ,internal ,revenue ,code of #aihf by ,states1 and to assume management of any such program as part of the ,federal #dja,kids ,account ,program under section #c in the event that such a program does not meet the requirements of such section #ebi7;f71 and 7#b7 to require informational reports from ,states maintaining such a #dja,kids ,account ,program4 #g4 ,state ,for purposes of this ,act1 the term ,state includes the ,district of ,columbia1 any possession of the ,united ,states1 and any ,indian tribe 7as defined in section #de;,a7c77#f7 of the ,internal ,revenue ,code of #aihf74 #h4 ,appropriation ,there is hereby appropriated to the ,secretary of the ,treasury1 to remain available until spent without fiscal year limitation-- 7#a7 #ajj1jjj1jjj for the implementation and administration of this ,act 7other than the purposes described in paragraphs 7#b71 7#c71 and 7#d772 7#b7 #cj1jjj1jjj for each fiscal year beginning with fiscal year #bjbd for the administration of the ,federal #dja,kids ,account ,program2 7#c7 such sums as are necessary to assist ,states in the establishment of a #dja,kids ,account ,program pursuant to section #ebi7;f7 of the ,internal ,revenue ,code of #aihf 7according to such procedures as the ,secretary shall determine72 and 7#d7 such sums as are necessary to make contributions to ,federal #dja,kids ,accounts as required under paragraphs 7#d7 and 7#e7 of section #c7;b74