You are expected to deposit what you set as your goal in your Savings Plan Agreement. This may not always be the same amount each month. If you deposit a large lump sum, from a tax return for example, it might not always be matched. IDA provider rules vary about the minimum deposit for each month, so you should check with your provider. However, you should plan to deposit at least $25 each month for at least six months.
You can deposit as much money as you want into your savings account. However, the most match you can receive in a twelve month period is $3,000. If you save $1,000 and receive the usual match rate, you’ll have $4,000 to put towards your goal!
Taxes on my savings account
IDAs allow you to accumulate savings tax-free. The state of Oregon allows a deduction on your state tax return for deposits to your IDA through a designated non-profit IDA provider. Your IDA provider can refer you to someone to help you prepare your taxes. Please read IDA tax information(link) available through the Oregon Department of Revenue.
When does the Initiative match your savings?
Once the savings goal is reached and all parts of the savings plan are completed, every dollar saved by a participant is matched by the Initiative, typically with three dollars for every one dollar saved. IDA participants can then buy a home, get education or training, start or develop a small business, do certain home repairs, or buy equipment to support employment.
Why doesn’t the match money show up on your savings account statement?
The match money does not go directly into your savings account. It is held in a separate account. The match money is set aside for you and is available for you once you’ve built up your skills, developed your plan, and met your savings goal. When you make a purchase, match funds will be paid directly to the vendor.