Code of Alabama - Title 38: Public Welfare - Chapter 14 - Individual Development Account Program

• Section 38-14-1 Definitions
  As used in this chapter, the following terms shall have the following meanings: (1) DEPARTMENT. The Department of Human Resources. (2) ELIGIBLE INDIVIDUAL or FAMILY...
• Section 38-14-2 Establishment of account
  A person who is eligible to become an individual development account owner may enter into an agreement developed with a fiduciary organization for the establishment...
• Section 38-14-3 Matching funds
  Once the account owner has saved for a minimum of six months, has reached his or her savings goal, and has fulfilled all financial literacy...
• Section 38-14-4 Withdrawals and reimbursements
  (a) If an emergency occurs, an account owner may withdraw all or part of the account owner's deposits to an individual development account with the...
• Section 38-14-5 Financial literacy education
  Before becoming eligible to receive matching funds to pay for qualified purposes, individual development account owners shall complete a financial literacy education course offered by...
• Section 38-14-6 Source of deposits; limitations on deposits
  (a) Deposits to individual development accounts made by the account owner shall come from earned income, including, but not limited to, wages, earned income tax...
• Section 38-14-7 Exclusion from gross income
  Money deposited into individual development accounts shall not be included in gross income for income tax purposes. Any amount withdrawn from a parallel account, matching...
• Section 38-14-8 Selection of fiduciary organizations
  The department shall select fiduciary organizations through competitive processes. In making the selections, the department may consider factors including, but not limited to, the following:...
• Section 38-14-9 Administration of accounts
  (a) Subject to rules promulgated by the department, a fiduciary organization has sole authority over, and responsibility for, the administration of individual development accounts. The...
• Section 38-14-10 Eligibility for means-tested public benefits
  (a) An account owner's savings and matching funds shall not affect his or her eligibility for any means-tested public benefits, including, but not limited to,...
• Section 38-14-11 Funding
  The department shall not be obligated to fund individual development parallel accounts or be obligated to enter into contracts with fiduciary organizations unless the Legislature...

Last modified: May 3, 2021