Development Accounts Offer Savings Advantages
( July 24, 2003 )
Lincoln Hills Development Corporation (LHDC) is currently accepting applications for the Individual Development Account (IDA) Program. The IDA Program is designed to help individuals save money while learning financial skills and is sponsored by the Indiana Department of Commerce.
Through the program, qualified applicants are encouraged to save money, and every dollar they save is matched with $3 from the state. While participants can save more than $300 on their own, the state match will only be in effect for the initial $300, said Tammy Thompson, Lincoln Hills’ Community Services Program Director. This translates to a maximum state match of $900 per year or a total of $1,200 saved. Eligible families can participate two (2) to three (3) years depending on when applicants apply for the program.
The savings account is tax-free, but there are restrictions on how the money can be spent. It can be used as a down payment on a home for the applicant or a dependent, to begin or purchase a business, or to obtain college courses or technical training that can lead to a job. To qualify, applicants must earn less than 175 % of federal income poverty levels, and only one family member can open an account.
Lincoln Hills Development Corporation has operated this program for six (6) years in Perry, Spencer, and Crawford Counties. Individuals interested in applying for the Individual Development Account Program should contact Tammy Thompson or Julie Hardesty at (812) 547-3435 or 1-800-467-1435.