HB356 Alabama 2011 Session

Summary

Primary Sponsor

Mike Ball

Republican

Session

Regular Session 2011

Title

Individual Development Account Program, established in Human Resources Department, created for individuals with low income

Description

Existing law does not provide for the establishment of an Individual Development Account Program in the Department of Human Resources.

This bill would establish an Individual Development Account Program in the Department of Human Resources.

This bill would authorize certain persons with low income to enter into agreements developed with a fiduciary organization for the establishment of an individual development account.

This bill would require the agreement to provide for the amount of savings deposits, match fund rates, assets goals, financial literacy education classes to be completed, additional training specific to the asset, and financial counseling the individual will attend, as well as other services designed to increase the financial independence of the person.

This bill would provide that the funds in the account shall be matched under certain circumstances and provide that money may be withdrawn from the account for certain qualified purposes.

This bill would allow money to be withdrawn from the account if money is withdrawn for emergencies and would remove a person from the program if money is withdrawn for other purposes.

This bill would require the account holder to fulfill certain requirements before the withdrawal of money from the account and would provide that money deposited in the account shall not be considered gross income for income tax purposes.

This bill would provide that money withdrawn from the account for qualified purposes shall not be considered gross income for income tax purposes and would provide for the selection of fiduciary organizations to administer the program.

The bill would provide for the duties of financial institutions holding individual development accounts.

This bill would provide that an account owner's savings and matching funds shall not affect his or her eligibility for any means-tested public benefits and for related purposes.

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Subjects

Human Resources Department