MS SB2824

Allows Mississippi homeowners and taxpayers to establish catastrophe savings accounts (labeled regular savings or money market accounts) to cover insurance deductibles and uninsured losses from hurricanes, windstorms, tornadoes, and similar catastrophic wind events.

Permits an income tax deduction for contributions to catastrophe savings accounts and exempts all interest earned on such accounts from state income tax.

Limits annual contributions based on insurance deductible amounts: $2,000 for deductibles of $1,000 or less, up to $15,000 for higher deductibles (or twice the deductible amount, whichever is less), and up to $250,000 for self-insured individuals.

Requires distributions from catastrophe savings accounts to be included in taxable income unless used for qualified catastrophe expenses; imposes an additional 2.5% tax on non-qualified distributions (with exceptions for account owners age 70 and older and those no longer owning a homestead).

Protects catastrophe savings accounts from attachment, levy, garnishment, and legal process; effective January 1, 2013.