How to Use the FTHSA vs IDA Priority Calculator
When your monthly savings budget is limited, deciding whether to prioritize a First-Time Homebuyer Savings Account (FTHSA) or an Individual Development Account (IDA) can be confusing since both offer real, but different, financial benefits. This calculator splits your monthly budget between the two based on your stated priority and estimates the annual benefit each one delivers.
An FTHSA, offered by several states such as Colorado, Minnesota, and Oregon, lets you deduct contributions from state taxable income up to an annual cap (commonly around $14,000) as long as the funds are eventually used toward a home purchase. An IDA is a matched savings program, typically for lower-income savers, where a nonprofit or public program matches your contributions (often at a 2:1 ratio) up to a program cap, usable for a home, education, or a small business.
If buying a home is your near-term goal, funding the FTHSA first up to its deduction cap usually makes sense. If homeownership is further off, prioritizing the IDA captures the matching funds sooner, since that benefit is realized immediately rather than deferred. Exact caps, match ratios, and eligibility rules vary by state and program provider, so treat these numbers as representative estimates.
Frequently Asked Questions
Yes, they are separate accounts with separate purposes, so you can contribute to both. If your monthly budget is limited, it helps to decide which one gets priority.
If homeownership isn't imminent, prioritizing the IDA usually makes sense because the matching funds add value immediately, then route any remaining budget into an FTHSA up to the annual deduction cap.