Individual Development Accounts
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United Way offers the Individual Development Account (IDA), an innovative matched savings program that allows families to build assets and develop skills for financial self-sufficiency.
Through the IDA participants benefit through financial skills development, financial coaching, access to financial services and training related to the participant’s primary savings goal. The IDA is a statewide program that provides opportunities for individuals with low-to-moderate income to:
- purchase a first-time home
- pay for college or job training
- start or expand a small business
United Way of Central Alabama coordinates the IDA’s through the Assets for Independence Program, an initiative of the Office of Community Services of the U.S. Department of Health and Human Services. IDA’s are available to qualifying hard-working Alabamians whose incomes and assets fall within federally determined limits.
What is the Individual Development Account Program? Click for Answer
How does the Individual Development Account work? Click for Answer
With the IDA, qualified participants can get up to $4,000 in matching funds to put towards a home, college or small business. Once enrolled, participants:
- Open a free Individual Development Account Savings Account (a no-fee savings account) at a partnering financial institution and make monthly deposits of at least $25 which will be matched by a federal grant program
- Begin the free financial education classes to set financial goals and become financially self sufficiency
- Once the savings goal is achieved, participants’ savings are matched with IDA Matching Funds to be used for a home purchase, towards college/job training expenses or to start or expand a small business
By enrolling in the Individual Development Account program, you will learn the benefits of saving, receive financial education and credit counseling (if needed), become eligible for free income tax preparation assistance and have the opportunity to develop smart financial habits that will benefit you for the rest of your life.
How do I enroll in the the Individual Development Account program? Click for Answer
To be eligible for the IDA program, individuals must have:
- Earned income
- Annual adjusted gross income of less than $47,700 for a family of four or an individual income of $23,340.
- No more than $10,000 in total net worth excluding an automobile and home
- IDA Income Eligibility – Persons in Family and Adjusted Gross Income
1 Up to $23,340
2 Up to $31,460
3 Up to $39,580
4 Up to $47,700
5 Up to $55,820
6 Up to $63,940
7 Up to $71,060
8 Up to $80,180
For families with more than 8 persons, add $4,020 for each additional person.
How do I get started on my Individual Development Account? Click for Answer
To learn more about United Way’s IDA program and to confirm your eligibility call us at (205)458-8970 or (888)-421-1266 or email us at email@example.com