SEC. 224. RESIDENTIAL EMERGENCY ASSET-ACCUMULATION DEFERRED TAXATION YIELD (READY) ACCOUNTS.

(a) In general – The term “residential emergency asset-accumulation deferred taxation yield (READY) account” means an individual retirement account that is established solely for the benefit of a taxpayer’s family member who has been injured in the line of duty while serving with a regularly recognized reserve component of the Armed Forces.

(b) Exclusion from gross income – The amount contributed to a READY account shall be excluded from the taxpayer’s gross income if the contribution is made solely for the benefit of a taxpayer’s family member who has been injured in the line of duty while serving with a regularly recognized reserve component of the Armed Forces.

EXCEPTION TO THE PROHIBITED TRANSACTION RULES

(a) Exception from prohibited transaction rules – A sale or exchange by an individual retirement account described in subsection (b) of section 4975(e) with respect to a security is not subject to the prohibitions and restrictions imposed by section 4975(e)(1), if—

1. (i) The account is established solely for the benefit of a taxpayer’s family member who has been injured in the line of duty while serving with a regularly recognized reserve component of the Armed Forces, and
2. (ii) The sale or exchange is made at a fair market value price.

Sec. 4975(e)(1)(F), (G), and (H)

CROSS-REFERENCES

(i) Section 224(e)(4), relating to Residential Emergency Asset-Accumulation Deferred Taxation Yield (READY) accounts.

Sec. 26(b)(2)

(ii) Section 62(a), relating to Deductions allowed by section 224

Sec. 165(h)

(iii) Section 877A(g)(6), relating to Coordination with Expenditures from READY Accounts

Sec. 6693(a)(2)