This topic provides brief overview information about Individual Development Accounts (IDA) in a question and answer format.
An Individual Development Account (IDA) is a special bank account that helps you save for your education, the purchase of a first home, or to start a business. Other purposes are allowed in some States. A table showing which States have IDAs and for what purposes they may be used can be found in the topic Individual Development Account (IDA) - State Differences. You use earnings from your work to set up an approved bank account for an IDA.
You contribute money from your earnings from work. With an IDA, your contributions may be matched with money from your State's TANF (Temporary Assistance for Needy Families) program or from special funds called "demonstration project" money. Not all States provide matching funds, but if yours does, the matching money may help you reach your goal sooner. See the Individual Development Accounts (IDA) - State Differences topic and follow the link for a summary table that shows which States offer IDAs and which of those match contributions.
∑ If you are working and receiving TANF payments, you may be eligible for a TANF IDA. (Not every State currently offers a TANF IDA.)
∑ If you are working and either receiving TANF or have low income and assets, you may be eligible for a demonstration project IDA.
∑ Most states use the eligibility criteria that individuals with a family household income at or less than 200% of the Federal Poverty Guidelines may qualify for an IDA.
Your SSI benefit will not go down--it might even go up! This is because the earnings, the matching money, and the interest that goes into your IDA do not count as your income or resources when SSA figures your SSI. Similarly, your IDA does not count as income or resources for other Federal means-tested programs such as Food Stamps, TANF, and Medicaid.
Contact your State TANF agency.
A report, "Individual Development Account Programming, Policies, and Resources", contains an overview, background material, current IDA trends and policies, recent IDA research findings, the Federal perspective on IDA programs and lessons learned from established as well as newly formed State and local programs. The full text of the joint DOL/DHHS workshop summary report is available for viewing and printing in PDF format (requires Adobe Acrobat Reader) at:
A table showing which States have IDAs and for what purposes they may be used can be found in the topic Individual Development Account (IDA) - State Differences.
On the IDAnetwork's website, you can find information and ideas about how IDA initiatives and policies enable low-income families and individuals to save, build wealth, and contribute to the nationís continued economic growth. The website URL is:
A briefing book, which was developed by the Corporation for Enterprise Development (CFED) in conjunction with the Center on Budget and Policy Priorities (CBPP), aims to explain the treatment of Individual Development Accounts in Federal programs affecting low-income people. Titled "2002 Federal IDA Briefing Book; How IDAs Affect Eligibility for Federal Programs", it is available in PDF format (requires Adobe Acrobat Reader) at:
Individual Development Account (IDA) - Details
Individual Development Account (IDA) - Definitions
Individual Development Account (IDA) - Assets for Independence Program
Information for this topic was drawn from the SSA website at:
WorkWORLD™ Help/Information System
Share/Save: Click the button or link at left to select your favorite bookmark service and add this page.
This is one topic from the thousands available in the WorkWORLD™ software Help/Information System.
Complete information about the software is available at: http://www.WorkWORLD.org
See How to Get WorkWORLD page at: http://www.WorkWORLD.org/howtogetWW.html
NOTE: Sponsored links and commercial advertisements help make the WorkWORLD™ website possible by partially defraying its operating and maintenance expenses. No endorsement of these or any related commercial products or services is intended or implied by the Employment Support Institute or any of its partners. ESI and its partners take no responsibility for, and exercise no control over, any of these advertisements or their views or contents, and do not vouch for the accuracy of the information contained in them. Readers are cautioned to verify all information obtained from these advertisements prior to taking any actions based upon them. The installed WorkWORLD software does not contain advertisements of any kind.
Copyright © 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, Virginia Commonwealth University. All rights reserved.