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Code of Federal Regulations (Last Updated: May 6, 2024) |
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Title 45 - Public Welfare |
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Subtitle B - Regulations Relating to Public Welfare |
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Chapter II - Office of Family Assistance (Assistance Programs), Administration for Children and Families, Department of Health and Human Services |
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Part 263 - Expenditures of State and Federal TANF Funds |
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Subpart C - What Rules Apply to Individual Development Accounts? |
§ 263.22 - Are there any restrictions on IDA funds?
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§ 263.22 Are there any restrictions on IDA funds?
The following restrictions apply to IDA funds:
(a) A recipient may deposit only earned income into an IDA.
(b) A recipient's contributions to an IDA may be matched by, or through, a qualified entity.
(c) A recipient may withdraw funds only for the following reasons:
(1) To cover post-secondary education expenses, if the amount is paid directly to an eligible educational institution;
(2) For the recipient to purchase a first home, if the amount is paid directly to the person to whom the amounts are due and it is a qualified acquisition cost for a qualified principal residence by a qualified first-time home buyer; or
(3) For business capitalization, if the amounts are paid directly to a business capitalization account in a federally insured financial institution and used for a qualified business capitalization expense.