MS SB2825

Allows Mississippi homeowners to establish catastrophe savings accounts to cover insurance deductibles and uninsured losses from hurricanes, windstorms, floods, ice storms, earthquakes, and similar catastrophic events.

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

Limits contributions based on insurance deductibles: $2,000 maximum for deductibles of $1,000 or less; up to $15,000 or twice the deductible amount (whichever is less) for higher deductibles; $350,000 maximum for self-insured individuals.

Requires distributions from catastrophe savings accounts to be included in taxable income unless used for qualified catastrophe expenses, with an additional 2.5% tax penalty on taxable distributions (except for accounts of self-insured individuals age 70 or older).

Protects catastrophe savings accounts from attachment, levy, garnishment, and legal process; allows surviving spouses to continue the account without penalty upon the account holder's death.