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 account holder. The account holder, not the financial institution, is required to maintain documentation to verify that the withdrawals from the Catastrophe Savings Account were used exclusively for qualified catastrophe expenses. • Can I invest my Catastrophe Savings Account in stocks and bonds? No. Your Catastrophe Savings Account can only be an interest bearing account.
Related Questions
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- Who can contribute to a Catastrophe Savings Account?
