[Code of Federal Regulations]
[Title 45, Volume 2]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR286.40]

[Page 185-186]
 
                        TITLE 45--PUBLIC WELFARE
 
     CHAPTER II--OFFICE OF FAMILY ASSISTANCE (ASSISTANCE PROGRAMS), 
ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN 
                                SERVICES
 
PART 286--TRIBAL TANF PROVISIONS--Table of Contents
 
                     Subpart B--Tribal TANF Funding
 
Sec. 286.40  May a Tribe use the Tribal Family Assistance Grant to fund IDAs ?

    (a) If the Tribe elects to operate an IDA program, it may use 
Federal TANF funds or WtW funds to fund IDAs for individuals who are 
eligible for TANF assistance and may exercise flexibility within the 
limits of Federal regulations and the statute.
    (b) The following restrictions apply to IDA funds:
    (1) A recipient may deposit only earned income into an IDA.
    (2) A recipient's contributions to an IDA may be matched by, or 
through, a qualified entity.
    (3) A recipient may withdraw funds only for the following reasons:
    (i) To cover post-secondary education expenses, if the amount is 
paid directly to an eligible educational institution;
    (ii) For the recipient to purchase a first home, if the amount is 
paid directly to the person to whom the amounts are due and it is a 
qualified acquisition cost for a qualified principal residence by a 
qualified first-time buyer; or
    (iii) For business capitalization, if the amounts are paid directly 
to a business capitalization account in a federally insured financial 
institution and used for a qualified business capitalization expense.
    (c) To prevent recipients from withdrawing funds held in an IDA 
improperly, Tribes may do the following:
    (1) Count withdrawals as earned income in the month of withdrawal, 
unless already counted as income,

[[Page 186]]

    (2) Count withdrawals as resources in determining eligibility, or
    (3) Take such other steps as the Tribe has established in its Tribal 
plan or written Tribal policies to deter inappropriate use.