Frequent Pitfalls

If you are getting Supplemental Security Income (SSI) and plan to enroll in an IDA, it is very important that you find out who funds that IDA program.

If you are on SSI, it is highly recommended that you enroll in a federally funded IDA rather than an IDA funded by some other source.

If you choose an IDA program that is not federally funded, you may become ineligible for your SSI benefits because your IDA account could cause you to exceed the asset limit. The only way you can have a nonfederally funded IDA that does not impact your SSI eligibility is if your IDA is part of your approved Plan to Achieve Self-Support (PASS).

The two federal programs that fund IDAs are Temporary Assistance for Needy Families (TANF) and the Assets for Independence Act (AFIA). However, you do not need to be enrolled in those programs to have an IDA funded by them.

If you do not fulfill the requirements of the IDA program, you may become ineligible to access the matching funds offered by the program. Be sure to review the requirements of your program carefully with your IDA caseworker.

To open a federally funded IDA account, your earned income must come from work. IDAs funded by other sources may allow for income from other sources.

Most programs only allow you to save a total of $4,000 to $6,000 in your IDA. This savings limit is called the savings cap. The savings cap includes the money you deposit as well as the matching funds from the IDA program.