Washington--A Florida congressman has introduced legislation creating a catastrophic savings account based on the health savings account model to help victims in hurricane-prone areas put money aside to prepare for the financial impact of a major catastrophe.
Under the plan as introduced by Rep. Tom Feeney, R-Fla., homeowners would be able to save up to $15,000 tax-free in the accounts. Also under the plan, so-called catastrophe savings accounts would be created. These accounts would empower homeowners to put money aside to prepare for the financial impact of a major catastrophe.
Structured in the same manner as health savings accounts, a catastrophe tax-free savings account could be opened to cover current and future catastrophe-related expenses. Earnings from the money deposited would be tax-free, and any unused balances would roll over from year-to-year.
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