Coconino

What is an Individual Development Account (IDA)?: Individual Development Accounts (IDAs), are savings accounts available to low and moderate-income individuals or families who earn matching funds through regular and continuous savings AND participation in financial literacy classes. Match funds are disbursed if and when the participant’s savings are used for the acquisition of assets – business capitalization or financing of post-secondary education.

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Community Services - Individual Development Accounts (IDA)

1. What is an Individual Development Account (IDA)?: Individual Development Accounts (IDAs), are savings accounts available to low and moderate-income individuals or families who earn matching funds through regular and continuous savings AND participation in financial literacy classes. Match funds are disbursed if and when the participant’s savings are used for the acquisition of assets – business capitalization or financing of post-secondary education.

2. Do I need to wait until I have reached the total savings before I can use the IDA match funds?: No. You just need to fulfill the minimum amount of savings time – 6 months.

3. If I decide to no longer be in the IDA program, do I keep all my saved money?: Yes! Any money you put into your savings account is yours and will remain yours.

4. Can the IDA funds be used to pay off loans or other debts?: No. IDA funds are strictly applied to asset purchases for business capitalization or financing for post-secondary education (tuition, fee, books, and supplies).

5. Does being in an IDA program disqualify me from getting other assistance (i.e. grants, loans, government assistance, etc.)?: No. We encourage you to apply for other assistance as needed.

6. Do I need to claim the IDA funds on my taxes?: No. IDA funds are not earned income and are distributed to a third party.

7. Can I participate in the IDA program more than once?: Yes! Once you have completed your first IDA, you are welcome to reapply for another.

8. When does the IDA six months of required savings begin?: When you make your first deposit into the IDA bank savings account.

9. Can I save for the IDA at any bank?: No. You need to open a savings account with a partnering bank. You will be given detailed instructions as to which bank and how to open the account.

10. Do I need to pay back the funds I receive from the IDA program?: No, if it’s for business capitalization and/or post-secondary education.

11. Who can I contact if I have additional IDA questions?: Email Deputy Director Michele Axlund or Special Projects Program Manager Scott Neuman, call (928) 679-7453, at 2625 N. King Street, Flagstaff, Arizona 86004.