Corpus

Distributions from catastrophe savings accounts.

Miss. Code Ann. § 27-7-1005
in effect
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A distribution from a catastrophe savings account shall be included in the taxable gross income of the taxpayer unless the amount of the distribution is used to pay qualified catastrophe expenses. No amount of a distribution shall be included in the taxable gross income of the taxpayer if the qualified catastrophe expenses of the taxpayer during the taxable year are equal to or greater than the aggregate distributions during the taxable year. If the aggregate distributions exceed the qualified catastrophe expenses during the taxable year, the amount otherwise included in the taxable gross income of the taxpayer shall be reduced by the amount of the distributions for qualified catastrophe expenses. The tax paid under Section 27-7-5 that is attributable to a taxable distribution shall be increased by two and one-half percent (2-1/2%) of the amount of the distribution that is includable in the taxable gross income of the taxpayer. The additional tax imposed by this subsection does not apply if either of the following apply: The taxpayer no longer owns a legal residence that qualifies for homestead exemption under Section 27-33-1 et seq.; or The distribution is from a catastrophe savings account conforming with Section 27-7-1003(3)(c) and is made on or after the date on which the taxpayer attains the age of seventy (70) years. If a taxpayer who owns a catastrophe savings account dies, the amount of money in his or her account shall be included in the taxable gross income of the person who receives the account, unless that person is the surviving spouse of the taxpayer. Upon the death of the surviving spouse, the amount of money in the account shall be included in the taxable gross income of the person who receives the account. The additional tax imposed in subsection (4) of this section does not apply to a distribution from the account upon the death of the taxpayer or the surviving spouse.
Distributions from catastrophe savings accounts. | Corpus