An IDA is a trust account established by or for a TANF client or a low-income person at risk of becoming dependent on TANF assistance. Funds in an IDA may only be used for specific purposes.
To qualify as an IDA:
- deposits into the account must come from earned income;
- the earned income deposits must be matched by a unit of state or local government or through contributions made by a not-for-profit entity;
- funds in the account must be used solely to:
- start a business;
- purchase a home for a first-time buyer;
- pay for tuition, fees, or other postsecondary educational expenses; or
- purchase an automobile.
Any money paid out of the account must be made directly as vendor payments on behalf of the client for one of the intended purposes of the IDA.
Funds in an IDA are exempt from consideration as an asset in determining eligibility and benefit level for TANF.