Michigan Laws 206.905 – Participant savings plan agreement; matching funds; distributions; manner
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 206.905
- account: means an account established under section 4. See Michigan Laws 206.902
- Account holder: means a person who is the owner of an individual or family development account or the family if the account is a family account. See Michigan Laws 206.902
- Agency: means the Michigan state housing development authority of the department of energy, labor, and economic growth. See Michigan Laws 206.902
- Fiduciary: A trustee, executor, or administrator.
- organization: means a charitable organization exempt from taxation under section 501(c)(3) of the internal revenue code that is approved by the agency to manage a reserve fund. See Michigan Laws 206.902
- Program: means the individual or family development account program established in section 3. See Michigan Laws 206.902
- Program site: means a charitable organization exempt from taxation under section 501(c)(3) or 501(c)(14) of the internal revenue code that is approved by the agency to implement the individual or family development account program. See Michigan Laws 206.902
(1) A program site shall enter into a participant savings plan agreement with each account holder who is approved to establish an individual or family development account.
(2) Upon request from a program site, the fiduciary organization shall provide matching funds for contributions to an account by an account holder according to a participant savings plan agreement. Only the fiduciary organization shall expend funds to provide matching funds or for account holder support services.
(3) Matching fund distributions shall be made on behalf of an account holder according to participant savings plan agreements at the same time that an account holder withdraws money to pay qualified expenses. Matching distributions shall be at least a match of $1.00 for every $1.00 withdrawn from an account by an account holder to pay expenses for a purpose described in section 4(7) or for a purpose approved by the agency.
(4) Matching distributions under this section shall be made by check to the order of the account holder and the entity the account holder is paying.