SR 17-06 Dated 02/17

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION – Division of Family Assistance (DFA)

SUMMARY

This SR releases an update to the qualified purposes that funds in Individual Development Accounts (IDAs) may be used for. IDAs are dedicated savings accounts, similar in structure to IRAs, that can only be used for certain qualified purposes. Previously, these qualified purposes included purchasing a first home, financing post-secondary education, or financing a new business.

Now, accumulated funds in IDA accounts may only be used for the following qualified purposes:

1.    Purchasing a first home; or

2.    Financing post-secondary education.

Funds accumulated in IDA accounts can no longer be used for the purpose of financing a new business.

This SR also releases an update to the matched savings amounts in IDA accounts.

Due to the changes released in this SR, DFA Form 77t, IDA Pamphlet, its Spanish translation DFA form 77t (Sp), its Nepali translation DFA form 77t(Ne), and its associated instructions were obsoleted.

POLICY

Updates to Qualified Purposes for Use of IDA Funds:

Individual Development Accounts (IDAs) are dedicated savings accounts that aid low-income individuals in saving money for certain qualified purposes. The NH IDA program is managed by the New Hampshire Community Loan Fund (NHCLF), a community agency not related to the Department of Health and Human Services (DHHS).

Eligible low-income working individuals can deposit earned income into an IDA, and the funds are matched or enhanced by the managing agency. The NHCLF IDA program no longer allows accumulated funds to be used for the purpose of financing a new business. Now, accumulated funds in IDA accounts may only be used only for the following qualified purposes:

1.    Purchasing a first home; or

2.    Financing post-secondary education.

Updates to Matched Fund Amounts in IDA Savings Accounts:

Each dollar that a NH participant deposits into his or her IDA savings account will be matched 8:1. For every dollar saved, up to $500, the participant will receive $8 as a match, up to the maximum savings of $4,500.

NEW HEIGHTS & NH EASY SYSTEMS PROCEDURES AND IMPLEMENTATION

There are no system changes associated with this release.

DESCRIPTION OF REVISIONS MADE TO FORMS

The following forms and their associated instructions are now obsolete due to the creation of NHCLF’s own forms, and the updates to policy released in this SR:

DFA Form 77t, Want to Make Your Dreams Come True?

DFA Form 77t(Ne), Want to Make your Dreams Come True? (Nepali translation)

DFA Form 77t(Sp), Want to Make your Dreams Come True? (Spanish translation)

DFA Form 77t Want to Make your Dreams Come True? its associated instructions and Spanish and Nepali translation versions should be recycled and the NHCLF brochure, IDA Matched Savings Program, and NHCLF brochure insert, NH IDA Program Income Eligibility Guidelines, should be used immediately. A Certificate of Destruction has been included with the SR.

Upon receipt of this SR, destroy DFA Form 77t and its associated instructions and Spanish and Nepali translation versions. NHCLF will provide copies of its updated brochure, IDA Matched Savings Program, to State Office. When the updated NHCLF brochure becomes available, DCS Regional Supervisors will distribute the brochure to all District Offices. Contact the TANF Specialist when additional copies of IDA Matched Savings Program are needed.

POLICY MANUAL REVISIONS

Revised Adult Assistance Manual Topics

PART 413                              LESS COMMON TYPES OF RESOURCES: INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)

PART 513                              LESS COMMON INCOME TYPES: IDA WITHDRAWALS

Revised Family Assistance Manual Topics

PART 411                              LESS COMMON TYPES OF RESOURCES: INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)

PART 513                              LESS COMMON TYPES OF INCOME: IDA WITHDRAWALS

Revised Food Stamp Manual Topics

PART 411                              COMMON TYPES OF RESOURCES: INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)

PART 513                              LESS COMMON TYPES OF INCOME: IDA WITHDRAWALS

Revised Medical Assistance Manual Topics

PART 413                              LESS COMMON TYPES OF RESOURCES: INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)

PART 513                              LESS COMMON INCOME TYPES: IDA WITHDRAWALS

IMPLEMENTATION

The policy released in this SR will be effective March 1, 2017. The new pages containing the revised policy described in this SR will be available March 3, 2017.

Destroy all copies of DFA Form 77t Want to Make your Dreams Come True? and its associated instructions and Spanish and Nepali translation versions. Begin using NHCLF brochure, IDA Matched Savings Program, as soon as it becomes available. Contact the TANF Specialist when additional copies of IDA Matched Savings Program are needed.

CLIENT NOTIFICATION

No special client notification is planned or needed.

TRAINING

No special training is planned or needed.

FORMS MANUAL POSTING INSTRUCTIONS

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for DFA policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at www.dhhs.nh.gov/DFA/publications.htm, effective March 3, 2017. Additionally, this SR, and printed pages with posting instructions, will be distributed under separate cover to all internal hard copy holders of the Adult Assistance, Food Stamp, Family Assistance, and Medical Assistance Manuals.

DFA/AED:s