Code of 1986) or a Roth IRA (as defined in section 408A of such Code) of the individual, and (B) if the individual whose behalf the account was established does not elect to receive any such distribution, shall remain in the account. (2) Treatment of distributions (A) In general No amount shall be includible in gross income for purposes of the Internal Revenue Code of 1986 by reason of any cash distribution from an account under the Federal 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 (as defined in section 529(f)(4)(E) of such Code) which are paid or incurred during the taxable year of the distribution. (B) Treatment of rollovers The rules of section 529(f)(4)(C) of such Code shall apply in the case of a rollover distribution described in paragraph (1)(A)(iii). (d) Eligible individual For purposes of this section, with respect to any calendar year, the term eligible individual means a child who has not attained age 18 as of the last day of such calendar year and is a citizen of the United States. (e) Investment of account assets The Secretary of the Treasury shall ensure that amounts in the Federal 401Kids Account Program are invested so as to maximize returns over the first 18 years of the life of an eligible individual on whose behalf a 401Kids Savings Account is established under such program, and shall reevaluate the investment of such amounts after an eligible individual attains age 18 to ensure amounts are available and growing for uses later in the individual's life. The Secretary of the Treasury may, in the Secretary's discretion, permit some or all eligible individuals to exercise control over the investment of account assets other than amounts attributable to deposits under paragraph (4) or (5) of subsection (b) (including any gain or loss attributable thereto). (f) Reports (1) In general The designated custodian shall make such