Bill > HR440

This bill introduces the READY Accounts Act, which creates a new tax-advantaged savings account designed to help homeowners prepare for and recover from natural disasters or other home-related emergencies. Specifically, the bill allows individuals to contribute up to $4,500 annually to a Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) account, with the contribution limit adjusted annually for inflation. These accounts can be used to fund qualified disaster mitigation measures (such as installing impact-resistant windows, strengthening roof connections, or elevating a home) and disaster recovery costs that are not covered by insurance. Contributions to the account would be tax-deductible, and withdrawals used for qualifying expenses would be tax-free. If funds are withdrawn for non-qualifying purposes, they would be subject to income tax and an additional 20% penalty. The accounts must be established with a bank or approved trustee, cannot invest in life insurance, and are intended to help homeowners proactively protect and restore their primary residences from potential disaster damage. The bill will take effect for taxable years beginning after December 31, 2024, providing a new financial tool for homeowners to manage disaster-related risks and expenses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/440/all-info