What is earned income?
Earned income is income that comes from employment (self-employment included).
Will this affect any other program eligibility?
Federal law states there will be no reduction in benefits as a result of savings from FAIM accounts.
Can I receive Social Security and be in the program?
If you have employment income in addition to the Social Security income, you can be in the program.
Can I save more than $40 per month?
Yes, but only the $40/month ($480/year maximum) will be matched.
Can I save for my child’s education?
Yes, if they are able to start their post-secondary education within up to two years of opening the account.
Can I be in more than one FAIM program at a time?
No, you can be in one FAIM program at a time.
Can my spouse have a FAIM account?
Yes, as long as the spouse has earned income, they can have an account as well. They also can save for the same asset.
What happens if I need my money for an emergency?
If your savings is withdrawn for anything other than the stated asset, the FAIM account must be closed and you will be dropped from the program.
Do I have to pay taxes on FAIM money?
The only taxes paid would be on the small amount of interest earned.
What documentation do I need to enroll in the program?
A valid Social Security or ITIN number, current utility bill, current photo ID, and proof of employment income (one of the following): past 3 months paystubs, or prior year W-2, or prior year Federal Tax Return.
How long can I save for?
Savings can be deposited for up to 24 months (2 years).
How much can I save?
A maximum of $960 per account is allowed for FAIM savings.