California AB1726 establishes catastrophe savings accounts to help residents cover natural disaster expenses.

California AB1726 creates catastrophe savings accounts for residents to save for natural disaster expenses. These accounts allow for tax-free contributions and tax-free withdrawals for qualified catastrophe expenses. Contributions are limited to $15,000 annually for insured homeowners and $250,000 for uninsured homeowners. The accounts are intended to supplement insurance coverage and aid in pre-event mitigation and post-event recovery. The Franchise Tax Board must report annually on the accounts' performance. The accounts will become inoperative on December 1, 2032.

California AB1726 establishes catastrophe savings accounts to help residents cover natural disaster expenses.

California AB1726 creates catastrophe savings accounts for residents to save for natural disaster expenses. These accounts allow for tax-free contributions and tax-free withdrawals for qualified catastrophe expenses. Contributions are limited to $15,000 annually for insured homeowners and $250,000 for uninsured homeowners. The accounts are intended to supplement insurance coverage and aid in pre-event mitigation and post-event recovery. The Franchise Tax Board must report annually on the accounts' performance. The accounts will become inoperative on December 1, 2032.