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What
is an Individual Development Account?
An Individual Development Account or IDA is a special
savings account designed to help you reach your goals.
Accounts can be established for one or more of the following
purposes:
- higher education from an accredited institution
for traditional or vocational education such as Ivy
Tech or Purdue University
- a licensed training program from an accredited institution
designed to lead to employment
- home purchase
- purchase all or part of a business
How
does it work?
A qualified applicant can save up to $300 per year and
it will be matched by a special state fund and LUEA
four-to-one. In other words, for every dollar saved
a special account will be established matching it with
four dollars. An individual can save and earn as much
as $1,500 per year to help achieve their goals.
Example:
A qualified zone resident saves $300 in a special IDA
account. An additional $1,200 is set aside for the individual
and can be used for one of the four purposes. A total
of $1,500.
Who
qualifies?
Eligibility is based on the following: An account holder's
income must be at or below 150% of the poverty level.
For a family of four, this is approximately $24,075
per year or be receiving some form of public assistance.
TANF is one example. Account holder must be a zone resident
for at least the past six months and must remain a zone
resident while holding the account or in the program.
O.K.,
but what's the catch?
Well, yes, there are some requirements, but they are all
designed to help you achieve goals and dreams. An applicant
must agree to the following:
- to use the money for one of the four purposes only
- create a plan or timetable to achieve the purpose
or goals
- agree to save a predetermined amount during the
year
- work with program support managers
- attend and successfully complete a financial management
course
Sounds good! How do I find out more?
You can contact the LUEA.
To view the Individual Development Account Program (IDA)
Summary click
here.
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