

			Get Latest WorkWORLD

	www.workworld.org	workworld@vcu.edu

Individual Development Account (IDA) - Definitions

This topic provides definitions of terminology used with Individual Development Accounts (IDA) in WorkWORLD Help/Information topics. See Additional Information (below) for an expanded glossary reference.

Definitions

Date of acquisition

The date on which a binding contract to obtain, construct, or reconstruct the new principal residence is entered into.

Eligible educational institution

An institution described in the Higher Education Act of 1965, as in effect on August 21, 1996. Also, an area vocational education school as defined in the Carl D. Perkins Vocational and Applied Technology Education Act, as in effect on August 21, 1996.

Individual Development Account (IDA)

An account established by, or for, an individual who is eligible for assistance under the TANF program, to allow the individual to accumulate funds for specific purposes. Notwithstanding any other provision of law (other than the Internal Revenue Code of 1986), the funds in an IDA account must be disregarded in determining eligibility for, or the amount of, assistance in any Federal means-tested programs.

Post-secondary educational expenses

A student's tuition and fees required for the enrollment or attendance at an eligible educational institution, and required course fees, books, supplies, and equipment required at an eligible educational institution.

Qualified acquisition costs

The cost of obtaining, constructing, or reconstructing a residence. The term includes any usual or reasonable settlement, financing, or other closing costs.

Qualified business

Any business that does not contravene State law or public policy.

Qualified business capitalization expenses

Business expenses pursuant to a qualified plan.

Qualified entity

A nonprofit, tax-exempt organization, or a State or local government agency that works cooperatively with a nonprofit, tax-exempt organization.

Qualified expenditures

Expenses entailed in a qualified plan, including capital, plant equipment, working capital, and inventory expenses.

Qualified first-time home buyer

A taxpayer (and, if married, the taxpayer's spouse) who has not owned a principal residence during the three-year period ending on the date of acquisition of the new principal residence.

Qualified plan

A business plan that is approved by a financial institution, or by a nonprofit loan fund having demonstrated fiduciary integrity. It includes a description of services or goods to be sold, a marketing plan, and projected financial statements, and it may require the eligible recipient to obtain the assistance of an experienced entrepreneurial advisor.

Qualified principal residence

The place a qualified first-time home buyer will reside in accordance with the meaning of section 1034 of the Internal Revenue Code of 1986. The qualified acquisition cost of the residence cannot exceed 120% of the average purchase price of similar residences in the area.

Additional Information

A table showing which States have IDAs and for what purposes they may be used can be found in the topic Individual Development Account (IDA) - State Differences.

The IDAnetwork website includes a glossary to help users with varying degrees of knowledge to understand the language commonly used in the IDA field. The glossary includes financial literacy terms, public policy definitions, brief descriptions of Federal and State level programs and agencies, and more. View the glossary at:
http://www.cfed.org/programs/idas/

Source

Information for this topic was drawn from the Federal Register, Vol. 64, No. 69, April 12, 1999, pp. 17895-17896 available at:
http://www.acf.hhs.gov/programs/ofa/tanfru4.htm

WorkWORLD™ Help/Information System

Share/Save: Click the button or link at left to select your favorite bookmark service and add this page.

This is one topic from the thousands available in the WorkWORLD™ software Help/Information System.
Complete information about the software is available at: http://www.WorkWORLD.org

See How to Get WorkWORLD page at: http://www.WorkWORLD.org/howtogetWW.html

NOTE: Sponsored links and commercial advertisements help make the WorkWORLD™ website possible by partially defraying its operating and maintenance expenses. No endorsement of these or any related commercial products or services is intended or implied by the Employment Support Institute or any of its partners. ESI and its partners take no responsibility for, and exercise no control over, any of these advertisements or their views or contents, and do not vouch for the accuracy of the information contained in them. Readers are cautioned to verify all information obtained from these advertisements prior to taking any actions based upon them. The installed WorkWORLD software does not contain advertisements of any kind.