Sec. 410. DEPOSITS BY QUALIFIED ENTITIES

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## SEC. 410 DEPOSITS BY QUALIFIED ENTITIES ###

(a)In General Not less than once every 3 months during each project year, each qualified entity under this title shall deposit in the individual development account of each individual participating in the project, or into a parallel account maintained by the qualified entity— ####

(1)from the non-Federal funds described in section 405(c)(4), a matching contribution of not less than $0.50 and not more than $4 for every $1 of earned income (as defined in section 911(d)(2) of the Internal Revenue Code of 1986) deposited in the account by a project participant during that period; ####

(2)from the grant made under section 406(b), an amount equal to the matching contribution made under paragraph (1); and ####

(3)any interest that has accrued on amounts deposited under paragraph

(1)or

(2)on behalf of that individual into the individual development account of the individual or into a parallel account maintained by the qualified entity. ###

(b)Limitation on Deposits for an Individual Not more than $2,000 from a grant made under section 406(b) shall be provided to any one individual over the course of the demonstration project. ###

(c)Limitation on Deposits for a Household Not more than $4,000 from a grant made under section 406(b) shall be provided to any one household over the course of the demonstration project. ###

(d)Withdrawal of Funds The Secretary shall establish such guidelines as may be necessary to ensure that funds held in an individual development account are not withdrawn, except for one or more qualified expenses, or for an emergency withdrawal. Such guidelines shall include a requirement that a responsible official of the qualified entity conducting a project approve a withdrawal from such an account in writing. The guidelines shall provide that no individual may withdraw funds from an individual development account earlier than 6 months after the date on which the individual first deposits funds in the account. ###

(e)Reimbursement An individual shall reimburse an individual development account for any funds withdrawn from the account for an emergency withdrawal, not later than 12 months after the date of the withdrawal. If the individual fails to make the reimbursement, the qualified entity administering the account shall transfer the funds deposited into the account or a parallel account under this section to the Reserve Fund of the qualified entity, and use the funds to benefit other individuals participating in the demonstration project involved.