Frequently Asked Questions

Am I automatically accepted in the program if I meet all of the necessary requirements?
Unfortunately not. Applicants are admitted into the program based on available funding resources.

This sounds like a great deal, but I thought there was no such thing as free money. What's the catch?
There's no real catch to the IDA accounts. You will NOT have to repay any of this money to UIDAN - this is not a loan! There are a few requirements for you to participate. You will have to complete money management classes before you can open an account and some training around your asset goal before you can invest in your asset. Also, your savings and the matching dollars you receive can only be used to invest in certain assets.

I can barely make ends meet every month! How do you expect me to save any money?
Most people are surprised by how quickly they are able to find at least $20 per month to save in their account. For some, finding $20 to save can be as easy as rearranging the phone services they pay for every month, but almost never use. For others, having coffee at home instead of buying a cup on the way to work is the way they find extra savings. All of our Savers go through the process of creating a spending plan and a budget during money management training, and this serves as a great foundation to help you save and reach your chosen asset goal.

How do we know IDAs will be used as intended?
Provisions are built in to ensure compliance. Investors are informed of the eligible uses for IDAs, face penalties for misuse, and are motivated to comply because IDAs provide a route to their dreams. AAA Fair CRedit Foundation holds the matching funds in a separate account, and only writes a check at the time the account holder is ready to purchase their asset. Checks are written only to eligible vendors such as the seller of a home or institution furnishing a mortgage; an accredited post-secondary school; a business account established in a federally-insured financial institution; a rental property owner; or lease management agency.

Will I lose my Social Security disability benefits if I participate in an IDA?
No. Participating in an AFI IDA project will NOT cause you to lose your Social Security disability benefits. Social Security disability benefits can be provided in two ways: through Social Security Disability Insurance (SSDI) or through Supplemental Security Income (SSI). For the former (SSDI), any resources or assets do not affect income when determining eligibility or when calculating benefit payment amounts. As for SSI, the Social Security website states explicitly that money saved in an Individual Development Account is not counted when determining SSI eligibility or when calculating benefit payments. Moreover, in response to a question about the affect of IDA savings on SSI benefits, the website states, “Your SSI benefit will not go down—it might even go up!" This is because the earnings, the matching money, and the interest that goes into your IDA do not count as your income or resources when we figure your SSI benefit. In addition, any interest earned on an individual’s own contributions and on matching funds to an IDA is excluded from SSI’s definition of countable income and resources. Payouts from an IDA can be made only for a qualified purpose (such as for a home purchase, business capitalization, and higher education or training) or for an allowable emergency (as determined by UIDAN). These payouts and emergency withdrawals are also not counted as income for SSI purposes.

Do I need a lot of money to open an IDA account?
No. You can open an IDA account for as little as $15!

Where are savings deposited?
Certain designated financial institutions have agreed to establish special IDA savings accounts, jointly owned by UIDAN and you.

Can I open an IDA Account if I have bad credit? What if I'm on the ChexSystems?
Having bad credit will not stop you from opening an account. UIDAN will connect our Investors with organizations and resources that can help them deal with credit problems. Since this is a special account that does not involve writing checks, the ChexSystems will not be used by some of our participating financial institutions to screen our Investors.

Can IDA participants use their IDA to save for their child's post-secondary education?
No. We recommend a different savings program administered through the Utah State Board of Regents known as the Utah 529 College Savings Plan (UESP). IDA participants are encouraged to use IDAs for themselves in ways that will benefit their children (first homeownership, business capitalization, their own post-secondary education), and to explore other options for funding their children's education. Information on UESP is available at www.uesp.org or by calling 1-800-418-2551.

Will I receive monthly statements?
Yes. Your case manager will distribute monthly statements that show your deposits and interest match money earned.

Will I have access to my money once I deposit my savings into my account?
Because IDAs are intended to help people purchase assets, withdrawals for non-asset uses are strongly discouraged. Participants are always free to close their accounts and withdraw from the program but will not receive the match for early withdrawl.

What if I have an emergency and need the savings I have put in my IDA Account?
All of our account holders will be allowed to withdraw their savings to help deal with emergencies that involve eviction, loss of a home, loss of employment, and medical emergencies. You'd be able to make this withdrawal without losing your match money.

How do I receive match funds?
Matched funds will be made available when the Investor is ready to purchase an asset. At that time a vendor check will be issued directly to the company, institution or individual furnishing all or a part of a participant’s asset goal (for exanple: a title company, home inspector, wholesale supplier, or University).

Where does all this match money come from?
IDA Matched Savings accounts are funded through donations from individuals and grants from the federal and state government as well as private funding to the Utah IDA Opportunity Fund. The largest federal funder of IDAs is the Assets for Independence (AFI) Act which is administered through the Office of Community Services in Health and Human Services.

Why would anyone want to provide money for a program like this?
IDAs not only provide savings incentives, but also the opportunity for people to enter the financial mainstream. It is estimated that for each federal dollar invested in IDAs, five dollars go to the national economy in the form of new businesses, additional earnings, new and rehabilitated homes, reduced welfare expenditures, and human capital associated with greater educational attainment.

Is there a chance UIDAN won't have my money when it comes time for me to buy the asset I've been saving for?
No. UIDAN will always have the money it needs to match your savings. We'll never open an account unless we have the full amount someone could receive in match dollars up front. We reserve the full amount of match any Investor could receive whenever a new account is opened to ensure that all of our Investors will always have access to their funds when they are finished saving.

Who can I call to help me improve my current financial situation?
UIDAN is a program administered by AAA Fair Credit Foundation which has Certified Credit Counselors on staff to provide personal financial counseling and debt management relief. Call 1-800-351-4195 for immediate assistance or visit www.faircredit.org.