Medicaid Policy                                                                 

521-37 Individual Development Accounts (IDA)

Effective Date: July 1, 2005

No Previous Policy

 

IDA’s are matched savings accounts created with TANF block grant funds, or matched by a non-profit organization (these are called Demonstration IDAs).  Their use is restricted to post secondary education and training, business capitalization, and buying a home.  Exclude as a resource the contributions made by an individual, the matching funds from the TANF agency or the non-profit organization, and the interest earned on these accounts.  The interest earned on funds in an IDA are also excluded from income.

 

See 419-5 for how IDAs are treated as income.