New asset tracks include accounts for 529 College Savings and Emergency Savings.
The 529 College Savings asset track will help parents with young children start saving toward the future cost of attending college. The parent will be required to open a MNSaves account and make the $25 opening deposit. More information can be found on 529 accounts at www.mnsaves.org. Funds in the 529 account are to be withdrawn for eligible education-related expenses. Withdrawing funds from the 529 account for non-education use will incur immediate penalties and have additional tax implications.
The Emergency Savings asset has two tracks:
1. Planned Emergency Savings asset track funds will be third-party vendor paid toward critical repairs of a viable asset owned by the participant. Some examples are a) necessary repair of their viable vehicle such as replacement of the transmission or motor; b) necessary maintenance or energy efficiency updates to their primary residence such as roof repair/replacement, foundation repair, furnace/heating system replacement, replacing doors/windows, abatement of lead paint, asbestos, or vermiculite, etc.
2. Unplanned Emergency Savings asset track is meant for a household with relatively stable finances but no savings cushion. This track is limited to a one-time enrollment per household and has a $1,000 savings cap which may be matched with $3,000. Program funds will be third-party vendor paid during enrollment whenever possible to avoid affecting client benefits from other programs or their income tax filing. If the FAIM participant does NOT have a vendor-paid emergency during their 30-month enrollment period, funds in their account at the end of enrollment may be disbursed for deposit into their personal savings account to be held there for future emergency use. If savings/match are not third-party vendor paid, FAIM is not responsible for loss of benefits received from other programs – those interested need to discuss this track with their caseworker and FAIM coach before enrolling.
Additional information will be posted as it becomes available.
To be eligible for FAIM enrollment, applicants must:
- Be at least 18 years of age.
- Be and remain a resident of Minnesota with valid MN driver’s license or MN photo ID card.
- Have earned income (wages from employment or self-employment).
- Have total household net assets under $10,000.
- Have combined household annual gross income at or below 200% of the current federal poverty guideline.
- Have the ability to reach their saving goal in 24 months or less.
- Have the ability to purchase/obtain their chosen asset within 30 months.
- Other limitations may apply.