H.R. 440 — READY Accounts Act

This section establishes an above-the-line deduction for contributions to a Residential Emergency Asset-accumulation Deferred Taxation Yield (READY) account of up to $4,500 per taxable year (adjusted for inflation after 2025 using a cost-of-living adjustment keyed to 2024 and rounded down to the nearest $50). A READY account is a trust for paying an account beneficiary's qualified home disaster mitigation and recovery expenses for the beneficiary's principal residence (i.e., owned and used as such under IRC §121 rules). Qualified expenses include (1) specified disaster mitigation measures—such as installing impact-resistant windows or entry doors, elevating the home, or strengthening roof-to-wall connections—certified by a qualified industry professional as meeting Secretary of the Treasury criteria (developed with FEMA input); or (2) uncompensated repair costs from fire, storm, or other casualty. Accounts must meet trust requirements similar to health savings accounts (IRC §223), including cash contributions only (except rollovers), a permissible trustee (e.g., bank), nonforfeitable interests, and no investment in life insurance contracts. Certain IRA rules (IRC §§219(d)(2), (f)(3), and (f)(5)) also apply.