Nevada § 422A.494 - Purposes for which fiduciary organization may authorize individual development account holder to accumulate assets; withdrawal of money from account; removal of account holder from Program

§ 422A.494. Purposes for which fiduciary organization may authorize individual development account holder to accumulate assets; withdrawal of money from account; removal of account holder from Program

1. A person may: (a) Enter into an agreement with a fiduciary organization to establish an individual

development account pursuant to NRS 422A.493 only for a purpose authorized by the fiduciary organization; and (b) After establishing an individual development account pursuant to NRS 422A.493 , withdraw money from the individual development account only for a purpose authorized

by the fiduciary organization. 2. A fiduciary organization may authorize the establishment of an individual development

account and the withdrawal of money from the individual development account for one

or more of the following purposes: (a) The acquisition of postsecondary education or job training. (b) If the account holder has established the individual development account for the

benefit of a member of his or her household who is under 18 years of age, the payment

of expenses for extracurricular activities, not including the payment of tuition,

that are designed to prepare the member for postsecondary education or job training. (c) The purchase of a primary residence. In addition to paying the price of purchasing the residence, the account holder

may use money in the individual development account to pay any usual or reasonable

settlement, financing or other closing costs. Unless the account holder was displaced from the residence, had lost ownership of

the residence as a result of a divorce or is the owner of a manufactured home, the

account holder must not have owned or held any interest in a residence during the

3 years immediately preceding the purchase. (d) The rental of a primary residence. The account holder may use money in the individual development account to pay for

security deposits, the rent for the first and last month of the rental period, any

application fees and any other expenses necessary to move into the primary residence,

as specified in the personal development plan for increasing the financial independence

of the account holder developed pursuant to NRS 422A.493 . (e) The establishment of a small business. The account holder may use money in the individual development account to pay for

expenses related to establishing the small business, to hire employees and to use

for working capital pursuant to a business plan. The business plan must have been developed by a financial institution, nonprofit

organization or other agent which has demonstrated expertise in business and which

has been approved by the fiduciary organization. The business plan must include a description of the services or goods to be sold,

a marketing plan and projected financial statements. (f) Improvements, repairs or modifications necessary to make or keep the primary residence

of the account holder habitable or accessible for the account holder or a member of

his or her household. (g) The purchase of equipment, technology or specialized training that is required

for the account holder to become competitive in obtaining or maintaining employment

or to establish or maintain a business, as specified in the personal development plan

for increasing the financial independence of the account holder developed pursuant

to NRS 422A.493 . (h) The purchase or repair of a vehicle, as specified in the personal development

plan for increasing the financial independence of the account holder developed pursuant

to NRS 422A.493 . (i) The saving of money for retirement, as specified in the personal development plan

for increasing the financial independence of the account holder developed pursuant

to NRS 422A.493 . (j) The payment of debts owed for educational or medical purposes when the account

holder is saving for another authorized purpose, as specified in the personal development

plan for increasing the financial independence of the account holder developed pursuant

to NRS 422A.493 . (k) The creation or improvement of the credit score of the account holder by obtaining

a secured loan or a financial product that is designed to improve credit, as specified

in the personal development plan for increasing the financial independence of the

account holder developed pursuant to NRS 422A.493 . (l) The replacement of the primary residence of the account holder when such replacement

offers a significant opportunity to improve the habitability or energy efficiency

of the primary residence. (m) The payment of medical expenses incurred by the account holder or a member of

his or her household. 3. If the account holder is a child for whom a provider of foster care established

an individual development account pursuant to NRS 424.088 or a child for whom a relative or fictive kin established an individual development

account pursuant to NRS 432B.645 and such an account holder seeks to withdraw money from the individual development

account for a purpose authorized pursuant to subsection 2 that requires information

to be specified in the personal development plan for increasing the financial independence

of the account holder, the account holder shall develop a personal development plan

that substantially complies with subsection 4 of NRS 422A.493 . 4. If the account holder of an individual development account established for the

purpose set forth in paragraph (i) of subsection 2 has achieved the purpose of the

account holder in accordance with the personal development plan developed pursuant

to NRS 422A.493 , the account holder may withdraw, or authorize the withdrawal of, all deposits, including,

without limitation, matching deposits and interest accrued on deposits, in the individual

development account by rolling over the entire withdrawal amount into an individual

retirement account, a retirement plan or a similar account or plan established under

the Internal Revenue Service. Upon the withdrawal of all deposits in the individual development account, the fiduciary

organization shall terminate the account relationship with the account holder. 5. If an account holder withdraws money from an individual development account without

receiving the authorization of the fiduciary organization pursuant to subsection 2,

the fiduciary organization may remove the account holder from the Program. 6. Except as otherwise provided in NRS 424.088 and 432B.645 , if the account holder moves outside of this State or is otherwise unable to continue

in the Program, the fiduciary organization may remove the account holder from the

Program. 7. If an account holder is removed from the Program pursuant to subsection 5 or 6,

all matching deposits in the individual development account and all interest accrued

on matching deposits shall revert to the fiduciary organization. The fiduciary organization shall use the reverted funds as a source of matching

deposits for other individual development accounts. 8. As used in this section, “ household ” means an association of persons who: (a) Live in the same residence or dwelling; (b) Are related by blood, adoption or marriage; and (c) Are mutually dependent on each other for the basic necessities of life.