was established attains age 18, may be— (I) distributed to such individual in cash, (II) transferred directly to an eligible educational institution, mortgagee, lender, or guarantor with respect to an expense described in subparagraph (E)(i), or (III) contributed in a direct transfer to an ABLE account (as defined in section 529A(e)(6)) or a Roth IRA of the individual, and (iii) if the individual whose behalf the account was established does not elect to receive any such distribution, shall remain in the account. (B) Treatment of distributions No amount shall be includible in gross income under subsection (c)(3)(A) by reason of any cash distribution from an account under a 401Kids Account Program which is made after the date the individual on whose behalf such account was established attains age 18, 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 distribution. (C) Treatment of rollovers (i) ABLE accounts Any contribution from a 401Kids Account Program to an ABLE account pursuant to subparagraph (A)(ii)(III) shall be treated— (I) as a contribution from another ABLE account as described in section 529A(c)(1)(C)(i), and (II) as having been contributed to such ABLE account in a direct trustee-to-trustee transfer within 60 days of the distribution for purposes of such section. (ii) Roth IRAs Any contribution from a 401Kids Account Program to a Roth IRA pursuant to subparagraph (A)(ii)(III) shall be treated— (I) as a contribution from another Roth IRA as described in section 408A(e)(1)(A), and (II) as having been contributed to such Roth IRA in a direct trustee-to-trustee transfer within 60 days of the distribution for purposes of section 408(d)(3), and shall not be taken into account under subsection (c)(3)(E). (D) Additional tax on nonqualified use (i) In general The tax imposed by this chapter for the taxable year shall be increased by an amount equal to 10 percent of the amount of any distribution from an account