FAA4.A Financial Accounts (FIAC) : 05 Financial Account Types : C Individual Development Accounts (IDA) : .03 Individual Development Account (IDA) Withdrawals
Individual Development Account (IDA) Withdrawals
Withdrawals from an IDA can only be initiated by way of a vendor payment (from the financial institution directly to the provider of the allowable goods or services) in order to be not countable as unearned income. When the IDA account holder withdraws funds directly from the IDA account, those funds are countable as unearned income.
 
Money withdrawn from the IDA is not countable when any of the following occur:
 
●The money was counted when deposited.
●The money is used to pay educational costs from an accredited institution of higher education(g).
●The money is used to pay training costs from a licensed or certified training program that offers any of the following courses of study:
Vocational
Technical
Other courses of study
(See Allowable Educational Costs)
●The money is used to purchase a first home.
●The money is used to pay business capitalization costs.
 
For treatment of money withdrawn from an IDA for purposes other than those listed, see Individual Development Account (IDA).
 
An overpayment exists when withdrawals are made for purposes other than those allowed, unless not countable.