Ross Reintroduces Disaster Savings Account Act
"One common thread joins us all across the nation, and that is the unexpected risk posed to our families and communities by natural disasters, like we experienced last year with Hurricanes Hermine and Matthew," said Ross. "My colleagues and I have a duty to the American people to find proactive disaster solutions that work for Floridians and all Americans across the
"With hurricane season beginning this month, the DSA Act will provide Floridians the ability to use saved funds for disaster mitigation to purchase items that increase the safety of their homes, such as cement-fortified walls, storm shutters and generators. This type of savings will help reduce federal costs to taxpayers because every dollar spent on mitigation can save up to
The DSA Act will establish a new tax-preferred savings account for the purpose of fortifying residential property (i.e., houses, condos or apartments) in preparation for an impending natural disaster and, in the aftermath, for rebuilding and damage expenses. Homeowners will be allowed to contribute up to
In addition to the traditional expenses associated with disaster mitigation and repair of a residence, DSA Act accounts will allow homeowners to utilize DSA Act funds for uninsured personal casualty losses for their homes. This process will help mitigate, and even avoid altogether, insurance premium increases in instances where available DSA Act funds for smaller-value damages would allow homeowners to avoid tapping into insurance coverages for damage repairs.
Background:
~ The DSA Act creates a new section (Section 224) within the Internal Revenue Code of 1986 detailing Disaster Savings Accounts and the permitted use of tax-deferred dollars.
~
* Permits eligible individuals to set aside up to
* Allows the DSA to be established under the management of a "Trustee", which can be a bank, insurance company, or other entity that can demonstrate proper management and distribution of funds as detailed by this act.
* An eligible individual is one who owns property, upon which a structure sits that is also insured by a policy traditionally required by the mortgage-holding lender.
* Examples of hazards include earthquakes, floods, hail, hurricanes, lightening, power outages, sinkholes, tornadoes, wildfires and any other natural disaster.
* Remaining DSA funds may roll over into the following year.
* Includes a 20 percent penalty tax on funds withdrawn from a DSA and used for purposes other than disaster mitigation expenses.
* Allows for a cost-of-living adjustment in accordance with section 1(f)(3) of the Internal Revenue Code.
Read this original document at: https://dennisross.house.gov/news/documentsingle.aspx?DocumentID=398593


Higgins Questions Health Secretary About Tax Breaks for Health Insurance Executives Accused of Defrauding American Taxpayers
Brown Presses Top Health Official on Opioid Resources
Advisor News
- Your client’s $3 million portfolio doesn’t tell you their insurance needs
- How life insurance can provide liquidity for wealthy families
- Retirement providers turn to digital engagement to retain assets
- Looking out for clients with diminished mental capacity
- House panel advances CLEAR Forms Act backed by IRI
More Advisor NewsAnnuity News
- What lower interest rates mean to annuity payouts
- AM Best downgrades A-Cap insurers amid financial and regulatory troubles
- Lawsuit claims Delaware Life hid billions in insurer-linked investments
- AM Best to Deliver Presentation at 2026 ACLI Annual Conference
- Global Atlantic Announces Launch of ForeLifetime Income, a New Fixed Index Annuity
More Annuity NewsHealth/Employee Benefits News
Life Insurance News