FAA4.A Financial Accounts (FIAC) : 05 Financial Account Types : D Individual Development Accounts (IDA)
D Individual Development Accounts (IDA)
 
(01/01/21 - 12/31/21)
An Individual Development Account (IDA) is an interest-bearing savings account that allows eligible participants receiving both CA and NA to save money for any of the following:
 
Education
First Home Purchase
Training
Business Capitalization
 
The following IDA savings are not countable as a resource while the CA and NA remain active:
 
An IDA savings balance of $9,000 or less
Accumulative deposits of $12,000 or less over the lifetime of the IDA
Interest earned on an IDA account when the interest remains in the account
50% of earned income deposited in the IDA account but no more than $100 per month
 
When a participant reports having an IDA account, review the Individual Development Account Agreement (FAA-0257A) form with the participant. The participant’s signature authorizes release of information from the financial institution. Upload the FAA-0257A to OnBase and give a copy to the participant. The participant’s signature:
 
Helps ensure that the parent or caretaker relative understands the purpose and requirements for holding an IDA
Authorizes FAA to obtain current balance, deposit and withdrawal information from the Financial institution.
 
Discuss anticipated use of the IDA with the participant to project future circumstances that may affect eligibility.
 
Verification and documentation must include the following:
 
Name and branch of the financial institution
Date the account was opened
Current balance in the account
All IDA financial institution statements received since opening of the account
All IDA deposits, (including amounts, interest), and the source of the deposited funds
All IDA withdrawals, including the manner and reason for the withdrawals
The amounts that are not countable as a resource and the reason not countable
The amounts that are countable as a resource and the reason countable
The total accumulative deposits throughout the lifetime of the IDA
 
The FAA worker completes the following prior to determining whether IDA funds are countable or not countable as a resource:
 
Reviews for status changes
Reviews the history of deposits and withdrawals that have occurred
Resolves any discrepancies between the participant’s statements and the IDA financial account statements
 
Key the IDA amount that is not countable on FIAC using the IX Financial Account Code in the ACCT TYPE field.
 
Key the IDA amount that is countable on FIAC using the IC Financial Account Code in the ACCT TYPE field on FIAC.
 
Treat the IDA as a regular savings account when one of the following applies:
 
There is a break of one full month in CA or NA benefits
The IDA holder has been convicted of program fraud or an Intentional Program Violation
 
Key the SV Financial Account Code in the ACCT TYPE field on FIAC.
 
Policy and procedures regarding an IDA are outlined as follows: