Individual Development Accounts (IDAs)

Have you heard of Individual Development Accounts (IDAs)? These accounts were created specifically for low-income Iowans. The difference between a regular savings account and an IDA is that the money you save from work will be matched dollar for dollar up to $2,000 for a qualifying individual or $4,000 for a qualifying family. The matching funds are provided by an organization designated as a matching partner.

Money deposited into an IDA must be saved for the purpose of purchasing a first home, paying for post-secondary education or vocational training expenses such as tuition, buying a vehicle to drive to work (if you don't already have one), or purchasing assistive technology for a home or a vehicle.

Who Qualifies for IDAs?

To be eligible for an IDA, you must be currently working and meet one of the following two criteria:

1. You are eligible for or enrolled in Iowa's Family Investment Program (FIP) at the time of application.

2. You meet both of the following two sub-criteria:

Your household income is either less than twice the federal poverty line at the time of application or within Federal Earned Income Tax Credit limits.

The 2009 income guidelines are:

Family of 1: $21,660
Family of 2: $29,140
Family of 3: $36,620
Family of 4: $44,100
Family of 5: $51,580
Family of 6: $59,060
Family of 7: $66,540
Family of 8: $74,020
Your household net worth was less than $10,000 at the end of the calendar year that proceeded the time of application.

To receive the savings match, you must:

Become a member of a participating credit union.
Make a minimum deposit of $25 a month and save money for six consecutive months.
Complete a financial education program.

If you are using your IDA to save for a home or to start a small business, you must also complete a home buyer or small business education program.

IDAs and Supplemental Security Income (SSI).

IDAs are a great way for those on SSI to save money. The Social Security Administration does not count the earnings, the matching money, or the interest that goes into your IDA as income or resources when calculating your SSI benefit. For more information on IDAs and SSI, go to the Social Security's SSI Spotlight web site at: www.ssa.gov/ssi/spotlights/spot-individual-development.htm

Want to Learn More About IDAs?

Contact Marybeth Foster at the Iowa Credit Union Foundation. You will be directed to a participating credit union in your area. You can reach Marybeth at 515-221-3001 or marybethf@iowacreditunions.com

You can visit the following website for more information:
www.iowacreditunions.com/aspx/community_outreach/indiv_dev_accts.aspx