HB774 Alabama 2010 Session

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

This bill would establish an Individual Development Account Program in the Office of the Commissioner of 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would provide that the funds in the account shall be matched under certain circumstances and provide that money may be withdrawn from the account for certain qualified purposes

This bill would allow money to be withdrawn from the account if money is withdrawn for emergencies and would remove a person from the program if money is withdrawn for other purposes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This bill would provide that money withdrawn from the account for qualified purposes shall not be considered gross income for income tax purposes and would provide for the selection of fiduciary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

To establish the Individual Development Account Program in the Office of the Commissioner of the Department of Human Resources; to authorize certain persons with low income to enter into agreements developed with a fiduciary organization for the establishment of an individual development account; to require the agreement to provide for the amount of savings deposits, match fund rates, asset goals and 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; to provide that the funds in the account shall be matched under certain circumstances; to provide that money may be withdrawn from the account for certain qualified purposes; to allow money to be withdrawn from the account if money is withdrawn for emergencies; to remove a person from the program if money is withdrawn for other purposes; to require the account holder to fulfill certain requirements before the withdrawal of money from the account; to provide that money deposited in the account shall not be considered gross income for income tax purposes; to provide that money withdrawn from the account for qualified purposes shall not be considered gross income for income tax purposes; to provide for the selection of fiduciary organizations to administer the program; to provide for the duties of financial institutions holding individual development accounts; to 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.