Savings for Working Families Act of 2006

H.R. 4751, the Savings for Working Families Act of 2006, proposed the creation of Individual Development Accounts (IDAs) to help low-income Americans between the ages of 18 and 61 build long-term assets. Under this bill, eligible individuals could open tax-exempt savings accounts where their contributions would be matched by participating financial institutions or non-profit organizations.

The funds in these accounts could be used without tax penalty for specific life-improving goals, such as paying for higher education, purchasing a first home, or starting a small business. To encourage financial stability, the bill required participants to complete financial education courses before withdrawing funds and ensured that these savings would not disqualify them from receiving other federal assistance.