Iowa HF988 establishes a catastrophic savings account for residents to pay for catastrophic event expenses, with tax incentives.

Iowa HF988 creates a catastrophic savings account for residents to save for qualified catastrophic expenses, defined as deductibles under a homeowner’s property and casualty insurance policy covering flood, windstorm, or another catastrophic event. The bill sets lifetime contribution limits based on the account holder’s insurance premium. It provides tax incentives, including a deduction for contributions and exemption from tax on interest. It also includes provisions for account administration, beneficiary designation, and tax reporting requirements.

Iowa HF988 establishes a catastrophic savings account for residents to pay for catastrophic event expenses, with tax incentives.

Iowa HF988 creates a catastrophic savings account for residents to save for qualified catastrophic expenses, defined as deductibles under a homeowner’s property and casualty insurance policy covering flood, windstorm, or another catastrophic event. The bill sets lifetime contribution limits based on the account holder’s insurance premium. It provides tax incentives, including a deduction for contributions and exemption from tax on interest. It also includes provisions for account administration, beneficiary designation, and tax reporting requirements.