What are Individual Development Accounts?
An Individual Development Account is a type of savings account where the payee’s contribution is matched. Eligibility is income-based. The intent is to encourage low income families and individuals to save and develop assets.
How Individual Development Accounts Work
Most IDA programs require the applicant’s household income to be at or below 200% of the federal poverty guidelines. There are also limits on assets and resources. Additionally states have different ways of looking at IDA funds in terms of being assets for Supplemental Security Income (SSI) and Medicaid.
IDA account holders are expected to be working toward advancing their education, opening a small business or purchasing a home. Funds are matched by program sponsors, such as government agencies, private companies or faith-based organizations. Participants are required to attend trainings on money management and asset building.