§460.6. Individual development account

A. For purposes of this Section, "individual development account" shall mean a financial account to be used for the purposes specified in this Section and established in the name of an individual account holder who is eligible for the individual development account program based on established income eligibility determination.

B. Notwithstanding any other provision of law to the contrary, a recipient may still receive TANF benefits while maintaining an individual development account which meets the following criteria:

(1)(a) Deposits shall only be made by the individual account holder, a nonprofit organization, an individual contributor, or the state on behalf of the individual.

(b) Total deposits into an individual development account over the life of the account shall not exceed six thousand dollars excluding interest.

(2) At any point in time, the balance of an individual development account shall not exceed six thousand dollars.

(3) The account holder may withdraw monies from an individual development account for the following purposes only:

(a) To pay his educational expenses incurred at an accredited institution of higher education.

(b) To pay his training costs incurred for a training program approved by the department.

(c) To pay for work-related clothing, tools, or equipment as approved by the department.

(d) For homeownership.

(e) For business capitalization.

(4) TANF monies may be deposited into this account, including but not limited to any matching funds that may be appropriated for that purpose.

C. The department shall ensure that there is a limitation of one individual development account per household.

D. An individual account holder who ceases to receive TANF program benefits may withdraw deposited monies from an individual development account for any purpose, except that the individual account holder shall comply with any restriction on the use of any monies deposited by a nonprofit organization or an individual contributor, or on the use of any state matching funds.

E. The department shall promulgate rules and regulations in accordance with the Administrative Procedure Act to implement the provisions of this Section which shall include but not be limited to the following:

(1) The establishment and administration of the individual development account program.

(2) The criteria a nonprofit organization or an individual contributor shall satisfy before making a deposit to an individual development account.

(3) Penalties for fraud or abuse of any provision of this Section.

F. The department may administer an individual development account program as provided in this Section contingent upon the availability of funding to do so.

Acts 1997, No. 881, §1; Acts 2001, No. 1098, §1; Acts 2002, 1st Ex. Sess., No. 84, §1, eff. April 18, 2002; Acts 2013, No. 285, §1, eff. June 14, 2013.