NEED AWAY TO SAVE MONEY FOR YOU
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Transcript NEED AWAY TO SAVE MONEY FOR YOU
Open the Door to a
New Opportunity
A special savings
account that can help
you double your
money.
AN IDA CAN HELP YOU SAVE $$$ FOR YOUR
FIRST
HOME
COLLEGE FEES
SMALL BUSINESS YOU
WANT TO START
YOU MUST MEET ONE OF
THE FOLLOWING:
TANF/K-TAP Recipient
Household Assets
under $10,000
Eligible for the Earned
Income Tax Credit
Total Household
Income less than 2x
Federal Poverty Level
Persons in family
Poverty guideline
1
$21,660
2
29,140
3
36,620
4
44,100
5
51,580
6
59,060
7
66,540
8
74,020
For families with more than 8 persons, add $7,480 for each additional person.
SOURCE: Federal Register, Vol. 74, No. 14, January 23, 2009, pp. 4199–4201
Develop Financial Plan
Complete a Financial
Education Program
Complete an IDA Application
Open an IDA at a Local Bank
or Credit Union
Save at least $500 in an IDA
over 2 to 3 years
Receive a Dollar Match
You save $500
Match you receive will be
$1,000
Dollar matches vary by agency
An IDA doubles your money by providing you with a dollar-fordollar match. For example, if you save $500 in an IDA, your
sponsoring agency will match your initial $500 and you will have
a total of $1000 in your account.
Most sponsoring agencies in Kentucky require you to have a
household income of less than twice the federal poverty level.
You must complete a financial education program and a financial
plan for achieving your goal.
You can withdraw from the program at any time and you will
receive only the money that you deposited into the IDA. Upon
completing the program, you are able to use funds based on the
financial goal you selected. However, your sponsoring agency
must approve the withdrawal of any matched funds.
I can use money from an IDA to meet any
financial goal.
False: Money from an IDA must be used for one of
three goals:
Paying for educational expenses
Purchasing a home
Starting a small business
A sponsoring agency will match as much
money as I can manage to save in an IDA.
False: Your sponsoring agency will usually match up
to $500. However, some agencies allow you to
participate twice in an IDA program.
To open an IDA, I must make at least $50,000
per year if I have four people living in my
household.
False: A family of four must make $44,100 or less per
year to participate in an IDA program.
The money I put into my IDA is nonrefundable
if I decide to quit the program.
False: The money you deposit into an IDA is yours
and will be refunded if you quit the program.
However, any matched funds will be returned to the
sponsoring agency.
Opening an IDA is the best way for me to learn
about money management.
False: Although opening an IDA is a great way to
double your money, it is not a way to learn about
money management. Money management skills are
taught in financial education programs such as
Money Smart.
Kentucky Domestic Violence Association, Inc.
P.O Box 356
Frankfort, KY 40502
Phone: (502) 209-5382
Web site: www.kdva.org
Program participants must be survivors who have been affected by domestic
violence in any way (parent or child). Participants must have household assets
under $10,000, be eligible for the Earned Income Tax Credit, and have a total
household income less than 2x the federal poverty level. IDAs include a 2-to-1
match. Participants save a maximum amount of $2000 and are eligible to
spend $6,000 on their asset. In addition, KDVA has a separate emergency IDA
fund to assist program participants with unforeseen expenses such as car
repairs and rent. Emergency assistance is limited to $300 per participant.
Community Action Council
710 High Street
Lexington, KY 40508
Phone: (859) 233-4600
Web site: www.commaction.org
Please contact Community Action Council for specific program
requirements.
The Race For Education, Inc.
1818 Versailles Road
Lexington, KY 40504
Phone: (859) 252-8648
Fax: (859) 252-8030
Web site: www.racingscholarships.com
Provides scholarships to students pursuing a career in the equine
(horse) or agriculture industries as well as students from equine
industry families. A student must be a scholarship recipient to
open an IDA.
The Center for Women and Families
927 South Second Street
P.O. Box 2048
Louisville, KY 40201-2048
Phone: (502) 581-7200
Web site: www.thecenteronline.org
Program participants can be survivors of domestic violence; the general
public is welcome also. Participants must have low-to-moderate income
and are required to complete three (3) money management workshops
before opening an IDA. Money management classes cover topics such as
check advance loans, insurance, and making a family budget. A total of
six (6) workshops must be completed.
Assistance with K-TAP
K-TAP Information
(502) 564-7050
Corporation for Enterprise Development (CFED)’s Individual development accounts:
Respondent List. (2007). http://www.cfed.org/focus.m?parentid=31&siteid=374&id=374
IDA.com’s IDA facts. http://idaaccount.com
U.S. Department of Health and Human Services. Assets for Independence, Office of
Community Service. (2007).
http://www.acf.hhs.gov/programs/ocs/afi/fact_sheet.html
Corporation for Enterprise Development (CFED)’s Fact Sheet: Individual development
accounts.
http://www.cfed.org/imageManager/IDAnetwork/IDA_Fact_Sheet_2008_09_18.pdf
Federal Deposit Insurance Corporation (FDIC). Money Smart Program. (2009).
http://www.fdic.gov/consumers/consumer/moneysmart
U.S. Department of Health and Human Services. The 2009 HHS Poverty Guidelines. (2009).
http://aspe.hhs.gov/poverty/09poverty.shtml
Questions
Photographs: Microsoft Office
Robert H. Flashman, Ph.D.
State Extension Specialist in Family Resource Management
Katrina Akande, M.A.
Doctoral Candidate in Family Studies
November 2010
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