“Matched Savings”
Individual Development Account (IDA)
What is the Individual Development Account (IDA) Program?
The IDA program is a one-to-one (1:1) matched savings program, with up to $4,000 in matched savings, to help pay for a vehicle, home, small business costs, or post-secondary (after high school) education.
An Individual Development Account (IDA), also known as a “Matched Savings” Account, is where funds are deposited for an IRC client.
Advantages:
Purchase an eligible asset sooner
Save money on loan interest
Increase your saving and financial skills
Who is eligible?
Refugees within 5 years of arrival in the United States
Income must be less than 200% of Federal Poverty Guidelines
OR Income is less than 80% Household Adjusted Median Family Income (HAMFI) for Salt Lake County for a Home IDA
Must have earned income
Must have less than $10,000 in household assets
Must be able to make monthly deposits
First time in an Office of Refugee Resettlement (ORR) funded IDA program
Matched Savings Accounts:
Matched Savings Accounts are a key component of the IRC Financial Capability program. A Matched Savings Account matches the amount a person puts into savings with an equal amount provided as a grant from the IRC Down Payment Assistance (DPA) program.
Savings Timeframe:
3-12 months for vehicle (car or truck)
3-18 months for home, business or education
Minimum $25/month deposits
There are 2 parts to the IDA program:
The first part is saving money.
The second is taking classes.
Some things to keep in mind:
For saving money you must be in the program saving money for at least 3 months before you are eligible to make a purchase.
Purchase a vehicle: You have a maximum of 12 months to save your money, take your classes, and buy a vehicle.
Purchase for home, business or education: You have a maximum of 18 months to save your money, take your classes, and make your purchase for a home, business, or education.
You must put at least $25 per month into savings while you are in the IDA program. (It’s a good idea to make this a life-long habit to maintain financial capability.)
Nasratullah Alakozai used his IDA funds to purchase an auto.
Education Requirements:
4 Financial Classes
Asset Specific Classes:
1 Car Buying Class
2 Home Buying Classes
1 Business Plan
1 Education Plan
1 Review Meeting
Financial Classes:
Participants must take at least 4 of the 6 classes. All classes are online on Zoom.
Classes include:
Banking
Credit
Budgeting
Savings
Investments
Taxes
These classes are offered with interpretation as needed and offered at different times each month to accommodate the schedules of different people. We offer enough classes for most clients to complete their classes in 1 month once we have classes in their language scheduled.
Asset Specific Classes:
Car Buying Class (1): This class covers car insurance, car loans, how to choose a car, and car maintenance.
Home Buying Classes (2): These classes include everything you need to know to get ready and buy a home.
Business: This class covers what a business plan is and how to make a business plan.
Education: This class covers career planning, education management, and financial aid.
Review Meeting:
The review meeting will cover:
Review what you learned in the classes.
Review budget and financial behavior.
Ask questions you may have and make sure you are ready to start the buying process.
Complete a plan for how this asset will help you.
Mukasa Flavia in her new car using IDA funds!
What can I purchase?
Post-secondary Education
Home
Small Business Capital
Vehicle
Education:
Job training
Professional Recertification
Post-secondary (after high school) education tuition
Post-secondary education fees: entrance exam fees, TOEFL/GED prep fees, test fees, laptop, cell phone if required by the class, driver’s education
Home:
Purchase of a home to be used as the client’s primary residence
Vehicle:
Purchase of a vehicle through a licensed dealer in order to:
Substantially reduce commute time
Maintain or improve employment
Enable access to education, vocational training, and/or professional recertification courses
Please Note:
The IDA program cannot help clients purchase a vehicle just because it would make general life activities easier. The vehicle must specifically help the client become more financially independent of public benefits and generally more successful.
Clients cannot buy a car from someone selling their own car (private party) or from an auction. It must be purchased through a licensed dealer.
Felix Gil purchased a home using both IDA and DPA match savings funds. This image is of the day he signed, surrounded by his family.
How do I get started?
Set an enrollment appointment.
Contact:
Carolina Terrazas (Financial Capability Program Manager) - Email
Ahmed Ajeel (IDA Coordinator) - (801) 834-2200 or Email
Enrollment Documents:
These are the documents you will need before you can begin enrolling for an Individual Development Account (IDA).
Required:
Driver’s License or State ID Card
Most Recent Payroll Check Stubs (previous 3 months)
Social Security Card
I-94 or Resident Alien Card
Recent Bank Statements (previous 3 months)
If available, please also provide:
Prior year’s tax return
Prior year’s W-2 form(s)
Prior year’s 1099 (if self-employed)
Baba Shreen used his IDA funds to purchase an auto.
Purchase your asset
It’s a process… You will need to have these documents ready by the time you make the purchase.
Home - Purchase Requirements:
Final closing disclosures
Vehicle - Purchase Requirements:
Driver’s license
Proof of insurance
Invoice from a licensed dealer
Funds disbursed to the vendor:
Once your savings goal and all the program requirements have been met, the IRC will match your savings 1:1 and produce payment directly to the vendor in the form of a check from the IRC and a cashiers check from your IDA at Zions Bank.
Please Note:
The IRC cannot provide the money directly to you. We must pay it to the company you are buying your asset from.
It takes about 10 days to get the match money ready once we have all of the required purchase documents.
Pacha Sayed used his IDA funds to purchase an auto.
For more information about the Matched Savings (IDA) Program please contact:
Ahmed Ajeel (IDA Coordinator) by Email or (801) 834-2200.