the satisfaction of the Secretary that the manner in 
which that person will administer the trust will be 
consistent with the requirements of this section. 
‘‘(3) The interest of an individual in the bal-
ance of his account is nonforfeitable. 
‘‘(4) The assets of the trust shall not be com-
mingled with other property except in a common 
trust fund or common investment fund. 
‘‘(c) ACCOUNT BALANCE LIMIT.—The aggregate ac-
count balance for all Catastrophe Savings Accounts main-
tained for the benefit of an individual (including qualified 
rollover contributions) shall not exceed— 
‘‘(1) in the case of an individual whose qualified 
deductible is not more than $1,000, $2,000, and 
‘‘(2) in the case of an individual whose qualified 
deductible is more than $1,000, the amount equal to 
the lesser of— 
‘‘(A) $15,000, or 
‘‘(B) twice the amount of the individual’s 
qualified deductible. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
CATASTROPHE
EXPENSES.— 
The term ‘qualified catastrophe expenses’ means ex-
penses paid or incurred by reason of a major dis-
aster that has been declared by the President under 
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section 401 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act. 
‘‘(2) QUALIFIED
DEDUCTIBLE.—With respect 
to an individual, the term ‘qualified deductible’ 
means the annual deductible for the individual’s 
homeowners’ insurance policy. 
‘‘(3) QUALIFIED ROLLOVER CONTRIBUTION.— 
The term ‘qualified rollover contribution’ means a 
contribution to a Catastrophe Savings Account— 
‘‘(A) from another such account of the 
same beneficiary, but only if such amount is 
contributed not later than the 60th day after 
the distribution from such other account, and 
‘‘(B) from a Catastrophe Savings Account 
of a spouse of the beneficiary of the account to 
which the contribution is made, but only if such 
amount is contributed not later than the 60th 
day after the distribution from such other ac-
count. 
‘‘(e) TAX TREATMENT OF DISTRIBUTIONS.— 
‘‘(1) IN
GENERAL.—Any distribution from a 
Catastrophe Savings Account shall be includible in 
the gross income of the distributee in the manner as 
provided in section 72. 
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‘‘(2) DISTRIBUTIONS
FOR
QUALIFIED
CATAS-
TROPHE EXPENSES.— 
‘‘(A) IN GENERAL.—No amount shall be 
includible in gross income under paragraph (1) 
if the qualified catastrophe expenses of the dis-
tributee during the taxable year are not less 
than the aggregate distributions during the tax-
able year. 
‘‘(B) DISTRIBUTIONS IN EXCESS OF EX-
PENSES.—If such aggregate distributions ex-
ceed such expenses during the taxable year, the 
amount otherwise includible in gross income 
under paragraph (1) shall be reduced by the 
amount which bears the same ratio to the 
amount which would be includible in gross in-
come under paragraph (1) (without regard to 
this subparagraph) as the qualified catastrophe 
expenses bear to such aggregate distributions. 
‘‘(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT 
USED FOR QUALIFIED CATASTROPHE EXPENSES.— 
The tax imposed by this chapter for any taxable 
year on any taxpayer who receives a payment or dis-
tribution from a Catastrophe Savings Account which 
is includible in gross income shall be increased by 10 
percent of the amount which is so includible. 
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‘‘(4) 
RETIREMENT
DISTRIBUTIONS.—No 
amount shall be includible in gross income under 
paragraph (1) (or subject to an additional tax under 
paragraph (3)) if the payment or distribution is 
made on or after the date on which the distributee 
attains age 62. 
‘‘(f) TAX TREATMENT OF ACCOUNTS.—Rules similar 
to the rules of paragraphs (2) and (4) of section 408(e) 
shall apply to any Catastrophe Savings Account.’’. 
(b) TAX ON EXCESS CONTRIBUTIONS.— 
(1) IN
GENERAL.—Subsection (a) of section 
4973 of the Internal Revenue Code of 1986 (relating 
to tax on excess contributions to certain tax-favored 
accounts and annuities) is amended by striking ‘‘or’’ 
at the end of paragraph (4), by inserting ‘‘or’’ at the 
end of paragraph (5), and by inserting after para-
graph (5) the following new paragraph: 
‘‘(6) a Catastrophe Savings Account (as defined 
in section 530A),’’. 
(2) EXCESS CONTRIBUTION.—Section 4973 of 
such Code is amended by adding at the end the fol-
lowing new subsection: 
‘‘(h) EXCESS CONTRIBUTIONS
TO CATASTROPHE 
SAVINGS ACCOUNTS.—For purposes of this section, in the 
case of Catastrophe Savings Accounts (within the meaning 
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of section 530A), the term ‘excess contributions’ means 
the amount by which the aggregate account balance for 
all Catastrophe Savings Accounts maintained for the ben-
efit of an individual exceeds the account balance limit de-
fined in section 530A(c)(1).’’. 
(c) CONFORMING AMENDMENT.—The table of parts 
for subchapter F of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘PART IX. CATASTROPHE SAVINGS ACCOUNTS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
Æ 
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