(a)

1. (1) The Family Savings Initiative Act, Acts 1999, No. 1217, provides for the establishment of individual development accounts (IDAs).
2. (2) Acts 2007, No. 252, transferred the Family Savings Initiative to the Division of Workforce Services.
3. (3) The purpose of the individual development account is to provide an opportunity for low-income and low-asset families to accumulate assets.
4. (4) IDAs are savings accounts that are available to transitional employment assistance (TEA) participant families and families whose income is below one hundred eighty-five percent (185%) of the federal poverty level.

(b) Acts 1999, No. 1217, establishes the general operating guidelines for the IDA program as follows:

1. (1) Account contributions shall be matched at a rate of three dollars ($3.00) for each one dollar ($1.00) contributed by the account holder with matching dollars not to exceed two thousand dollars ($2,000) per account holder or four thousand dollars ($4,000) per household;

2. (2) IDA program participants must be a resident of the state with:

   1. (A) Gross household income from all sources equal to or less than one hundred eighty-five percent (185%) of the federal poverty level; and
   2. (B) A net worth of ten thousand dollars ($10,000) or less disregarding the primary dwelling and one (1) motor vehicle owned by the household; and

3. (3)

   1. (A) IDAs may be used for any of the following qualified purposes:

(i) Qualified first-time home buyer;

1. (ii) Business capitalization account;

   1. (iii) Post-secondary educational expenses;

      1. (iv) Individual retirement account; and
      2. (v) Purchase or repair of an automobile, if not the sole purpose of the IDA.

   2. (B) If federal Temporary Assistance for Needy Families funds are used as match, only the purposes in subdivisions (b)(3)(A)(i), (ii), and (iii) of this section are allowable.

      1. (c) The value of the IDA is not considered when determining the participant's eligibility for:
2. (1) The Transitional Employment Assistance Program;
3. (2) The Supplemental Nutrition Assistance Program, formerly known as food stamps; and

4. (3) Family-related Medicaid programs.

   1. (d)
5. (1) IDAs are available through agencies that have contracted with the Department of Human Services to offer the service.
6. (2) Eligible families who express an interest in opening an IDA account will be referred to the local IDA agency.
7. (3) The IDA agency representative will meet with the potential account holder and explain the requirements of the IDA account.
8. (4) The potential account holder will be required to sign an agreement with the IDA agency.

(h) Emergency withdrawals.

1. (1) An emergency withdrawal may be made from an IDA account for the following unforeseeable emergencies and hardship reasons:

   1. (A) Unexpected illness or accident of the IDA participant or dependent resulting in medical expenses not covered by insurance or compensation;
   2. (B) Damage or destruction to participant's primary residence and the repair is not covered by insurance;
   3. (C) To prevent the eviction of the participant from his or her primary residence;
   4. (D) Funeral expenses for which the participant is financially responsible that are not covered by insurance;

   5. (E)

      1. (i) Separation or divorce by the participant.
      2. (ii) Qualifying expenses may include:

(b) (b) Court costs; and

1. (c) (c) Expenses previously covered by income of spouse;

   1. (F) To pay for normal monthly expenses, such as housing, utilities, food, etc., if the IDA participant unexpectedly loses his or her job; and
   2. (G) Other critical need cases as approved by the IDA agency program manager.

2. (2) If an unforeseeable emergency is caused by any of the following, the IDA participant will not qualify for an emergency withdrawal of funds from his or her IDA account:

   1. (A) Normal monthly expenses, except when the IDA participant unexpectedly loses his or her job;
   2. (B) Normal maternity leave;
   3. (C) Loss of overtime or holiday pay;
   4. (D) Elective or cosmetic surgery or orthodontia; or

   5. (E) Annual tax liability.

      1. (i) Emergency withdrawal limitations.
3. (1) Three (3) emergency withdrawals will be allowed during participation in the IDA program.
4. (2) The Program Eligibility Specialist should explain that more than three (3) emergency withdrawals will result in the participant being removed from program participation.