The READY Accounts Act amends the Internal Revenue Code to establish Residential Emergency Asset-accumulation Deferred Taxation Yield (READY).

The READY Accounts Act introduces a new type of tax-exempt account called a Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) account. These accounts allow individuals to save money for qualified home disaster mitigation and recovery expenses. Contributions are limited to $4,500 annually and can be deducted from taxable income. Distributions used for qualified expenses are tax-free. The bill defines qualified mitigation measures and recovery costs, and specifies rules for account transfers, terminations, and taxation of non-qualified distributions.

The READY Accounts Act amends the Internal Revenue Code to establish Residential Emergency Asset-accumulation Deferred Taxation Yield (READY).

The READY Accounts Act introduces a new type of tax-exempt account called a Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) account. These accounts allow individuals to save money for qualified home disaster mitigation and recovery expenses. Contributions are limited to $4,500 annually and can be deducted from taxable income. Distributions used for qualified expenses are tax-free. The bill defines qualified mitigation measures and recovery costs, and specifies rules for account transfers, terminations, and taxation of non-qualified distributions.