Assistive Technology Individual Development Account
FREQUENTLY ASKED QUESTIONS
What is an Individual Development Account?
Individual Development Accounts or “IDAs” are matched savings accounts established to help low-income individuals and households purchase important assets. Every dollar a person saves (up to a certain amount, in this program $4,000) is matched by one dollar. Working with a nonprofit agency, IDA participants establish a special savings account, identify a savings goal and agree to regularly save a certain amount each month. They also agree to participate in financial literacy and “asset specific” training. When the savings goal and other requirements are met, the nonprofit matches the participants’ savings and a check is sent directly to the vendor to purchase the asset.
What are Assistive Technology IDAs & what can be purchased?
Assistive Technology IDAs are matched savings accounts established to help low-income individuals and their families save for all types of assistive technology. Assistive Technology is broadly defined to include any device that maintains or enhances the functional capabilities of an individual with a disability – for example: hearing aids, wheelchairs and other mobility devices, vision aids, computers with and without special adaptations and software, cognitive aids, vehicle accessibility modifications and adapted vehicles, and business equipment and office furniture with modifications for people with disabilities. IDAs also can used to purchase the services needed to make effective use of an assistive device – help with selection, training and repairs, for example.
Who is eligible for the Assistive Technology IDA?
To enroll in Washington Access Fund IDA, an applicant must show that:
- He or she is a Washington state resident with a physical, mental or sensory disability and/or caring for a child or other family member with a disability;
- Household income at the start of the savings program is equal to or less than 80% of the county median income, adjusted for household size;
- Household net assets at the time of application must be at or below $20,000. “Household net assets” is the total market value of all assets owned in whole or in part by any household member minus total debts or obligations. The value of the primary dwelling unit, one motor vehicle, special needs trusts and similar accounts (including e.g., accounts set up under ABLE Act), and retirement accounts are excluded in calculating net worth;
- The individual account holder must be at least 18 years old when the equipment is purchased;
- The technology to be purchased qualifies as “assistive technology”.
How do participants enroll in the Assistive Technology IDA?
Complete and return the Assistive Technology IDA application. If the application is approved, you will complete a Savings Agreement & other enrollment forms. After these forms are completed, we will help you establish a special custodial IDA bank account. Once the account is set up, you must make regular monthly deposits in the account. Deposits will be made by electronic funds transfer on a day of the month that you choose.
Are there other requirements?
Yes. You must participate in financial literacy training and training or counseling relevant to your assistive technology purchase. The Access Fund will help you identify and/or provide the qualified trainings.
What income can I use to save for the IDA?
You can use any income, including SSI or SSDI.
Is there a deadline for applying?
Qualified applicants will be accepted on a first-come, first-served basis. Only a limited number of accounts available.
NOTE: Applications for the Assistive Technology IDA were due by October 31, 2011. We are still accepting appilcations for the next round of accounts which will be awarded on a first-come first-served basis at the beginning of 2012.
How long do I have to save?
You must save for at least six months in order to receive the match. Your savings goal must be completed within three years of your IDA enrollment.
How much can participants save and receive in matching funds?
It is a 1:1 match of up to $4,000.
| If your technology costs: |
You'll need to save: |
Which is about:* |
$2,000
|
$1,000 |
$28/month |
| $4,000 |
$2,000 |
$55/month |
| $6,000 |
$3,000 |
$83/month |
| $8,000 |
$4,000 |
$111/month |
*These figures assume you use the full 3 years of the program to earn match. If you want to achieve your savings goal in less than three years you’ll need to save more each month, or make extra deposits. You can also apply for an Access Fund loan if it’s necessary for you to acquire the equipment more quickly or need more than you’ve saved.
Can the IDA be combined with a low-interest Assistive Technology Loan or a Business Equipment Loan from the Washington Access Fund?
Participants also are eligible to apply for a low-interest loan from the Washington Access Fund. Participation in an IDA savings program does not guarantee loan approval. However, if approved, the loan can be combined with IDA savings and match to purchase needed equipment.
How will the IDA affect asset or income limits for SSI or other government benefits?
An IDA will not impact your eligibility for SSI or your monthly benefit payment, or any other federal benefit program if your savings account is set up in a custodial account. This is an account held in the name of the Washington Access Fund with the participant as a beneficiary. Because it is a custodial account, you cannot withdraw funds from the account without our permission. When a purchase is made, the check will be sent directly to the vendor – meaning that the funds do not pass through the participant’s account. This all means that neither the savings nor the match should be counted as income and/or assets.
If I change my mind, can I withdraw from the program?
Yes. You must notify the Access Fund of your decision. We will provide the paperwork you need to access the funds (that you have saved, not the match) in your IDA account. Note: withdrawal of funds for a non-IDA purpose could impact the amount of, or eligibility for, SSI, Medicaid or other government benefits.
Where can I get more information about other types of IDAs?
IDAs also can be used for higher education and job training; first time home ownership; capitalizing a small business; purchase of a computer or vehicle for education or work related activities and home improvements including home accessibility modifications. The Washington State Department of Commerce has a list of projects, please click here to find out more.
