Connecticut Administrative Code
Title 31 - Labor
51ddd - Individual Development Accounts Program
Section 31-51ddd-11 - Approved plan

Universal Citation: CT Reg of State Agencies 31-51ddd-11

Current through December 12, 2024

(a) The community-based organization operating a certified state IDA program shall be required to enter into an approved plan with each account holder.

(b) The approved plan shall contain the following requirements:

(1) a provision that the community-based organization shall establish in a timely manner an individual development account on behalf of the account holder;

(2) a provision that the account holder's participation in the program shall not extend beyond five years from the date of the establishment of such account;

(3) a deposit plan specifying the amount, form and schedule of deposits to be made by the account holder;

(4) the rate at which the account holder's deposits will be matched;

(5) the permissible savings goal for which the account is maintained;

(6) a provision that the community-based organization shall provide financial literacy training approved by the department;

(7) a provision that the account holder shall attend the financial literacy training;

(8) a provision that the community-based organization shall provide asset-specific training based upon the permissible savings goal;

(9) a provision that the account holder shall attend the asset-specific training;

(10) an explanation of the withdrawal policies, including the policies governing withdrawal of savings upon completion of the program, early withdrawal due to an account holder's decision to leave the program, termination of account due to nonperformance by the account holder, and emergency withdrawals;

(11) a provision that the account holder may request an emergency withdrawal or leave of absence;

(12) a provision allowing for the development of a contingency plan in the event the account holder exceeds or fails to meet the savings goals outlined in the agreement;

(13) a provision that the community-based organization shall implement the contingency plan on record with the department in the event the organization is no longer able to operate the program;

(14) a provision that any agreement for the investment of assets shall be at the direction of the account holder after consultation with the community-based organization;

(15) a provision that the community-based organization shall not require an account holder to make any purchase or enter into any commercial transaction with a specific individual, business, financial institution or other entity.

(16) a provision designating one or more beneficiaries of the funds, plus accrued interest, deposited by the account holder in the individual development account in the event of the account holder's death;

(17) a provision that the agreement may be modified only with the concurrence of the community-based organization and the account holder.

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