How IDAs Work
Tagged with: Individual Development Account
What are IDAs?
An Individual Development Account (IDA) is a matched savings account that helps individuals develop financial skills needed to save for life-changing economic transformations.
How much is the saving match?
In most cases, for every dollar you save, the program grants you a $5 match. So for example, if you saved $1,200, the match is $6,000, totaling $7,200.
What can I save for?
You may save for the purchase of major assets such as home purchase, home repair, vehicle, education, business, rental, retirement and adaptive technology. Different organizations offer different IDA asset goals.
Where can I go to start an IDA?
In addition to DevNW, there are many organizations throughout Oregon where you can start an IDA. Click here and find a program near you through the Oregon IDA Initiative.
How long does an IDA typically take to mature?
Generally, it takes 12 months to mature. For example, if your IDA goal was to save $1,000 and you made the monthly deposits your money would mature in one year. Some providers offer an option to fast track, meaning you make larger deposits over a shorter amount of time.
What are the program requirements?
General Eligibility Requirements are:
- Be an Oregon Resident.
- Have a household adjusted gross income, according to household size, at or below 80 percent of the median for your county. Check here for details.
- Have a household net worth at or below $20,000.
What does financial counseling and education entail?
Financial counseling is when you meet one-on-one with a Financial Counselor to go over your finances. At the end of the appointment your financial counselor will help you create a plan for reaching your goals.
The education piece is usually broken up into two classes. The first is a general financial class and the second is an asset specific class. For example, at DevNW, if your goal was to buy a house you would take Financial Foundations class and a Homebuying Foundations.
Is programming offered in languages other than English?
Yes! Programing is offered in Spanish, Russian, Vietnamese, Hindi, Farsi, and Arabic. To find an organization that offers programming in your language click here.
How much can I save?
The maximum savings that can be matched is $1000 each year. Every provider is a little different but generally they offer one, two, and three year IDAs.
Can my spouse and I save for different financial goals?
Yes. IDAs are for individual goals, however eligibility is based on household income. If funding is available, the household is income and net worth eligible, and both spouses have completed the counseling and education requirements, they each save for different goals at the same time.
Where is my money saved?
Your money is saved in a joint savings account at a local financial institution. Both you and your IDA provider have access to this account.
What if I have a financial hardship during the program, can I exit the program early?
If you have a financial hardship you are allowed to exit the program early. You will get your savings back but will not receive the matching funds.
What are costs associated with the program?
Enrollment fees vary by organization. At DevNW there is a $60 fee charged once you’ve been approved and are ready to start saving.
Where does the program funding come from?
IDA’s are funded by the contributions of individuals and businesses from all over the state. Contributions are eligible for a state tax credit. The entirety of the contributions is used to support the cost of the initiative.
Where can I go if I have more questions?
If you have more questions please visit the Oregon IDA Initiative website.
How do I get started?
To find a provider in your area and see what IDA’s they offer click here.
To find out more about what sort of IDA’s DevNW offers click here.