S 1940
READY Accounts Act
Jurisdiction
US Congress
Session
119th Congress (2025-2026)
Last updated at
Jun 14, 2026, 9:01 AM
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Bill overview
The READY Accounts Act establishes a new type of savings account called a ‘READY’ account to help individuals finance disaster-related home repairs and improvements. It allows taxpayers to deduct contributions up to $4,500 per year (adjusted annually for inflation starting in 2027) to these accounts, and withdrawals can be used for qualified disaster mitigation and recovery expenses. However, distributions not used for these specific purposes are taxed as ordinary income, and contributions exceeding the annual limit are subject to a 6% tax. The act also includes rules regarding the operation and governance of READY accounts to ensure they are used solely for disaster-related expenses.
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