What are the requirements of a Catastrophe Savings Account?
The account must be labeled as “Catastrophe Savings Account.” A taxpayer can establish only one Catastrophe Savings Account and must specify that the purpose of the account is to cover insurance deductibles and other uninsured risks caused by hurricanes, rising flood water or other catastrophic windstorm events. • Who can contribute to a Catastrophe Savings Account? South Carolina residents who own a single family residence (house, condo, townhouse, or modular or mobile home) that qualifies as a legal residence for South Carolina property tax purposes can contribute to a Catastrophe Savings Account. • Where can I establish a Catastrophe Savings Account? Catastrophe Savings Accounts can be established at a state or federally chartered bank. The account must be kept separate from all other accounts (e.g., checking or savings accounts, IRAs, medical care savings accounts and so on). It must be maintained specifically for the purpose of qualified catastrophe expenses incurred by the accoun
