Frequently Asked Questions
FAIM enrollment is now closed due to our matching grant ending in April. Please check back in the spring of 2021 for an update.
What is earned income?
Earned income is income that comes from employment (self-employment included).
Will enrollment in FAIM affect other program eligibility?
Federal law states there will be no reduction in benefits as a result of savings from FAIM accounts.
Can I enroll in the program if I receive Social Security?
If you have employment income in addition to the Social Security benefit, you may.
Can I save more than $80 per month?
Yes, but the deposits to a FAIM savings account must be made from earned income only. The maximum savings that may be matched is $960.00. There is a household limit of two enrollments in a lifetime which may affect how much you may save.
Can I be enrolled in more than one FAIM Program at a time?
No, FAIM is a statewide program. You may only have one FAIM account at a time. However, a household is allowed two enrollments in a lifetime so another family member may apply.
Can my spouse have a FAIM account?
Yes, as long as the spouse has earned income and meets program requirements, he/she may also have an account. Keep in mind there is a household limit of two enrollments in a lifetime.
Can I save for my child’s education?
Yes, however, they must be able to enroll in courses at an accredited college and spend out the FAIM account no later than Spring 2021 term.
Can FAIM funds be used to pay my student loans?
No, FAIM funds for education may only be used toward tuition, books, and some fees for the current term at an accredited post-secondary institute of higher education. Funds may not be used for exams, licensing, or certification courses.
Can I use my FAIM account to purchase a home or start/enhance my business outside of Minnesota?
No. The home being purchased must be located within Minnesota. Similarly, your business must be owned/operated within Minnesota.
What if I need my savings for an emergency?
Your deposits are always your funds but you will need to contact your FAIM coach to access the account in an emergency. If deposits are withdrawn from the FAIM account for anything other than the stated asset, the account must be closed and you will be exited from the program.
Do I have to pay taxes on FAIM money?
No. Your deposits must be made from earned income which was already taxed. The funds used to match FAIM savings is grant money which is held in a separate escrow account, thus, the FAIM saver is not responsible to claim the match as income or be taxed on those dollars.
What documentation do I need for enrollment?
Valid MN driver’s license or state-issued ID, proof of MN residency, valid social security number or ITIN number and proof of income (Federal 1040 tax form is preferred).
What may be used as proof of income?
Previous year Federal 1040 Tax Form is preferred.
OR, Previous year W2’s AND documentation of all other income/benefits for the year from all adults in the household.
OR, Pay stubs AND documentation of all other income/benefits for the previous 3 full months from date on the application from all adults in the household. Example: FAIM application signed/dated on 1-9-2020 requires income for the full months of October, November, December.