Term Individual Development Accounts
Code TB-0700.2100-330
Definition Organizations that provide access to an asset building tool that is designed to enable low-income families to save towards a targeted amount, usually used for building assets in the form of home ownership, post-secondary education and small business ownership. States are authorized by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to create community-based IDA programs with TANF block grant funds, and to disregard all money saved in IDAs when determining eligibility for means tested government assistance. Although the program requirements vary from state to state, most are offered through a collaboration of organizations in a community including nonprofit organizations which recruit participants and provide financial planning services, banks or credit unions which provide matching funds (usually one or two dollars for every dollar saved), and foundations, state or federal government which provide financial support for the matching funds. The latter are also known as "matched savings accounts".
Created 12/6/10
Changed 3/5/19
Use References Family Development Accounts
IDA Accounts
Matched Savings Accounts
Matched Savings Programs
See Also References Money Management (DM)
TANF (NL-1000.8500)
External Classification Terms Banking & Financial Services (NPC W02)
Financial Institutions (NTE W60)
Other Government/Economic Services (AIRS OT-600)
Other Government/Economic Services (CAN OT-600)
Related Concepts Financial Services/Benefits
Facet Service
Bibliographic References "IDAs May Lessen Wealth Gap, Especially Among Women and People of Color", Article from the May 19, 2000 edition of the CHN Human Needs Report, Coalition on Human Needs, http://www.chn.org/econdev/hnr05-19-00.html NOTE: this document is no longer available.

"Individual Development Accounts", Economic Success Clearinghouse (formerly Welfare Information Network) website, http://www.financeproject.org/irc/win/ida.asp

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