Individual Development Accounts (IDA)
An Individual Development Account (IDA) is an interest-bearing savings account that allows eligible participants receiving both NA and CA to save money for any of the following:
●Education
●First Home Purchase
●Training
●Business Capitalization
All of the following IDA savings are not countable as a resource while NA and CA 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 when the interest remains in the account.
●50% of earned income deposited in the IDA but no more than $100 per month.
To open an IDA, FAA staff and the participant complete the Authorization to Open an IDA (FAA-0837A) form when an eligible participant wishes to open an IDA. The participant can then take the FAA-0837A form to Bank of America Arizona to open the IDA account.
When a participant reports having an IDA, review the Individual Development Account Agreement (FAA-0257A) form with the participant. The participant’s signature authorizes the release of information from the financial institution. Upload the FAA-0257A to
OnBase(g) and give a copy to the participant. The participant’s signature is used for all of the following:
●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 the anticipated use of the IDA with the participant to project future circumstances that may affect eligibility.
Verification and documentation must include all of 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 the opening of the account
●All
IDA deposits, (including amounts, interest), and the source of the deposited funds
●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
FAA staff complete all of the following before determining whether IDA funds are countable or not countable as a resource:
●Review the IDA verification for status changes.
●Review the history of deposits and withdrawals that have occurred.
●Resolve 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 countable resource when any of the following apply:
●There is a break of one full month in NA or CA benefits.
●The IDA holder has been convicted of program fraud or an Intentional Program Violation.
Key the IDA amount that is countable on FIAC using the SV Financial Account Code in the ACCT TYPE field.
Policy and procedures regarding an IDA are outlined as follows: