What is an Individual Development Account (IDA)?

Individual Development Accounts (IDAs) are matched savings accounts that help people low income wage earners save towards the purchase of a lifelong asset, such as an education.

What is earned income?

Earned income is income that comes from employment (self-employment included).

Will this affect any other program eligibility (i.e., food support, disability income)?

Federal law states there will not be a reduction in benefits as a result of savings from Individual Development Accounts.

Will this affect my financial aid?

No. TuitionMatch-MN funds do NOT reduce a student's financial aid package as stated in Public Law 105 - 285 Title IV Assets for Independence Section 415.

Can I receive Social Security income and be on the program?

Yes, only if you have earned income in addition to the Social Security income.

Can I save more than $40 per month?

Yes, but only the $40/month ($480/year maximum) will be matched and you may not save more than $960 in your tuition match account. Students are encouraged to have an additional savings account to save in simultaneously for other uses (i.e., emergencies, goals, etc.).

Can my spouse have a TuitionMatch-MN account?

Yes, as long as the spouse has earned income, they can open an account and save for their own education at a participating school.

What happens if I need my money for an emergency?

Students are encouraged to keep a parallel savings account for emergencies. Emergencies withdrawals are NOT allowed from your TuitionMatch-MN account. If deposits are withdrawn for anything other than the stated asset, the TuitionMatch-MN account must be closed, the student will receive the balance of their savings that is in the account and then exited from the program.

Do I have to pay taxes on TuitionMatch-MN money?

The only taxes paid are on the small amount of interest earned on the savings account.

What documentation do I need for enrollment?
  • Proof of employment income (for all household members):
    • Prior year Federal Tax Return Or
    • Income list on FASFA if it has been verified through the IRS
  • Verification of three semesters left at participating school
  • Valid Social Security or ITIN
How long can you save for?

Savings can be deposited for up to 24 months (2 years).

How much can I save?

A maximum of $960 per account is allowed for TuitionMatch-MN savings