SB 2761 Summary

• Establishes the Family Empowerment Initiative allowing low-income individuals with gross household income not exceeding 185% of federal poverty level and net worth under $10,000 to open Individual Development Accounts (IDAs) through approved fiduciary organizations.

• Provides matching funds of $3 for each $1 contributed by account holders, capped at $2,000 per individual or $4,000 per household annually, with account holders required to complete financial literacy training before receiving matches.

• Permits IDA withdrawals for qualified purposes including postsecondary education, home purchase or repairs, business capitalization, automobile purchase, assistive technology, and emergency expenses with 12-month reimbursement requirements.

• Excludes IDA deposits and earnings from counting as income or assets for determining eligibility for means-tested public benefits and allows taxpayers contributing matching funds a state income tax credit of 50% of contributions, limited to $25,000 per year with a $100,000 annual cap.

• Requires fiduciary organizations to submit quarterly and annual reports to the Mississippi Development Authority detailing account activity and imposes penalties for unauthorized withdrawals from accounts.