Page 78
UPDATED: FEBRUARY 2005
176
INCOME
LIF DISREGARDS
INDIVIDUAL DEVELOPMENT ACCOUNTS - These accounts are trusts which allow recipients to set aside funds, outside of the resource limits, for the purposes of post-secondary education at an eligible educational institution, first home purchases and business capitalization.
Eligible educational institution means:
(a)an institution described in section 481(a)(1) or…#
(a) an institution described in section 481(a)(1) or 1201(a) of the Higher Education Act of 1965 as such sections were in effect on August 26, 1996; or
(b)an area vocational education school as defined in…#
(b) an area vocational education school as defined in subparagraph (C) or (D) section 521(4) of the Carl D. Perkins Vocational and Applied Technology Education Act as such sections were in effect on August 26,1996.
Post-secondary educational expenses means:
(a) tuition and fees required for the enrollment or attendance of a student of an eligible education institution; or
(b) fees, books, supplies, and equipment required for courses of instruction at an eligible education institution.
Qualified acquisition costs means the cost of acquiring, constructing, or reconstructing a residence. The term includes any usual or reasonable settlement, financing or other closing cost.
Qualified business means any business that does not contravene any law or public policy.
Qualified business capitalization expenses are qualified expenditures for the capitalization of a qualified business pursuant to a qualified plan.
Qualified expenditures are expenditures included in a qualified plan, including capital, plant, equipment, working capital, and inventory expenses.
(MRG)