Individual Development Account (IDA) - Withdrawals
Treatment of withdrawals from an Individual Development Account (IDA) varies depending on the source of the deposit and the purpose of the withdrawal. The following apply:
Money withdrawn in an approved manner and for an approved purpose is not countable. (See IDA - FIAC)
Money withdrawn for the following purposes is not countable:
First home purchase
Business capitalization
Money withdrawn for any purpose other than previously listed is countable in the month withdrawn. Key only the countable portion of the withdrawal.
This includes interest paid directly to the budgetary unit. (See IDA - FIAC)
Key the OT Unearned Income Code in the INC TYPE field on UNIC.
NOTE An overpayment exists when withdrawals are made for purposes other than previously listed. (See IDA - FIAC)
Money that was previously counted as earned income to the budgetary unit is not countable when withdrawn.
When withdrawals are made from an IDA into which both earned and unearned income has been deposited, only 50% of the withdrawal is not countable.
When withdrawals are made from an IDA into which only unearned income has been deposited, the entire amount withdrawn is countable.