So I was reading /r/personalfinance and I came across this thread on opening an Individual Development Account (IDA) and thought some of you guys might be interested.
The program is a matched savings account for those making less than 200% of the poverty rate. As a result this will be mostly for college kids and those working abroad or under the table. The program requires you to deposit between $25 and $83 a month, and then the government triples your investment for three years. If your income rises after signing up you are allowed to remain in the program. I haven't signed up yet, but I plan on doing so when I return to my home state next week.
It seems like a great opportunity to turn $3000 into $12000 while living abroad or attending school, and apparently there is the added benefit of a $2000 tax credit at the end of the three years.
Mainly I just wanted to let you guys know about this chance to save some cash, but I was also wondering if anyone had some experience with this program. It almost sounds too good to be true, but the reddit thread makes it sound pretty solid. Any info out there?
The program is a matched savings account for those making less than 200% of the poverty rate. As a result this will be mostly for college kids and those working abroad or under the table. The program requires you to deposit between $25 and $83 a month, and then the government triples your investment for three years. If your income rises after signing up you are allowed to remain in the program. I haven't signed up yet, but I plan on doing so when I return to my home state next week.
It seems like a great opportunity to turn $3000 into $12000 while living abroad or attending school, and apparently there is the added benefit of a $2000 tax credit at the end of the three years.
Mainly I just wanted to let you guys know about this chance to save some cash, but I was also wondering if anyone had some experience with this program. It almost sounds too good to be true, but the reddit thread makes it sound pretty solid. Any info out there?