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.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
