Department of Human Services

Families First Online Policy Manual

Individual Development Account




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The money that the participant deposits into the savings account is eligible for a match from a local bank, church, or other donors that contribute through TNCED or through the sponsoring PIC. The matching fund amount, plus the interest earned on that amount is documented for each IDA participant by TNCED or the sponsoring PIC, on a quarterly basis. An IDA Saver will not have access to the matching funds unless a withdrawal is authorized for a qualified purpose. Even for a withdrawal for a qualified purpose, the matching funds go directly to the vendor. The matching institutions and rates may vary by county and by the non-profit sponsor. However, the match rates are, at a minimum, 1:1 and, at a maximum, 9:1.


The matching funds are available for those account holders who:


        Attend the twice monthly meetings.


        Deposit the agreed upon amount (as decided by the participant and the non-profit sponsor) into their account twice a month. The deposit must be at least the minimum of the amount agreed upon, but may be a greater amount. If the deposit is a greater amount, the funds will not be matched unless a Deposit Change form has been signed by the designated non-profit sponsor staff member or the sponsoring PIC.


        Are currently employed. Once an IDA holder secures employment, deposits to the account begin to be matched immediately. For the period of time that a participant is unemployed, deposits will not be matched.


        The amount of match funds that a participant has in their IDA will be posted quarterly by TNCED or the sponsoring PIC. At the time of a qualified purchase the match funds are paid directly to the vendor, not the participant.


        Funds that are withdrawn for unqualified purposes are not eligible for a match.




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