This article will answer the question of whether money in the bank affects Social Security disability benefits and provide information on how to manage your resources while receiving benefits.
How Much Money Can You Have in the Bank on Social Security Disability?
The amount of money you can have in the bank on Social Security disability depends on which program you receive benefits from:
Supplemental Security Income (SSI)
SSI is a needs-based program, meaning your eligibility and benefit amount are based on your income and resources. For SSI, the resource limit is $2,000 for an individual and $3,000 for a couple. This includes money in the bank, stocks, bonds, and other assets that can be easily converted to cash.
Social Security Disability Insurance (SSDI)
SSDI is an insurance program funded by payroll taxes. Your eligibility and benefit amount are based on your work history and earnings. There is no resource limit for SSDI, meaning you can have any amount of money in the bank without affecting your eligibility.
How Does Money in the Bank Affect SSI Benefits?
If you receive SSI benefits, the amount of money you have in the bank can affect your eligibility in two ways:
Resource Limit:
If the total value of your countable resources, including money in the bank, exceeds the resource limit, you will not be eligible for SSI benefits.
Deeming:
If you live with a spouse or parent, their resources may be “deemed” to be available to you, even if they are not in your name. This means that a portion of their resources will be counted towards your resource limit.
How to Manage Your Resources While Receiving SSI Benefits
If you receive SSI benefits and have concerns about your resources, here are some tips:
- Keep track of your resources: It is important to know the value of your countable resources, including money in the bank, so you can stay within the resource limit.
- Sell excess resources: If you have resources that exceed the limit, you may be able to sell them and use the proceeds to purchase exempt resources, such as a home or vehicle.
- Set up an ABLE account: An ABLE account is a tax-advantaged savings account for individuals with disabilities. You can contribute up to $16,000 per year to an ABLE account without affecting your SSI eligibility.
- Seek legal advice: An experienced Social Security disability lawyer can help you understand the resource rules and develop a plan to manage your resources while receiving SSI benefits.
While there is no resource limit for SSDI, the amount of money you can have in the bank can affect your eligibility for SSI benefits. By understanding the resource rules and taking steps to manage your resources, you can ensure that you continue to receive the benefits you need.
Frequently Asked Questions
Q: What happens if I exceed the resource limit for SSI?
A: If you exceed the resource limit for SSI, you will not be eligible for benefits. However, you may be able to sell excess resources or set up an ABLE account to reduce your countable resources.
Q: How does deeming work?
A: Deeming is a process where a portion of the resources of a spouse or parent are counted towards the resource limit of an SSI recipient. The amount of resources that are deemed depends on the income and resources of the spouse or parent.
Q: What is an ABLE account?
A: An ABLE account is a tax-advantaged savings account for individuals with disabilities. You can contribute up to $16,000 per year to an ABLE account without affecting your SSI eligibility.
Q: Can I get legal help with managing my resources while receiving SSI benefits?
A: Yes, an experienced Social Security disability lawyer can help you understand the resource rules and develop a plan to manage your resources while receiving SSI benefits.
Q: Where can I find more information about SSI resource rules?
A: You can find more information about SSI resource rules on the Social Security Administration website or by contacting your local Social Security office.
Will Social Security Count All the Money in a Joint Account?
Social Security will consider half of the money in a bank account you co-own to be yours and will deduct it from your resource limit if you do.
Social Security will consider that all money in an account you co-own with someone who isn’t receiving SSI belongs to you and will count against your resource limit.
However, you will have the opportunity to clarify that you do not possess all of the money in an account or that you are not able to take money out of an account. Social Security calls this “rebutting” (arguing against) their assumption.
When Social Security pauses your benefits because youre over-resource, the agency will send you a letter explaining that it believes you have too much money in your bank account. You can rebut this assumption by calling Social Security or filing Form SSA-2574, Information About Joint Checking/Savings Accounts. The same is true if Social Security denies your initial application because you have too much money in your account.
Social Security limits how much you can have in cash you can have in a checking or savings account, though money from some sources doesn’t count. And Social Security does check.Updated by
There are strict limits on the amount of money you can have under the Supplemental Security Income (SSI) program without it affecting your eligibility for benefits. (Read our article on the SSI asset limits for an overview of the Social Security Administration’s (SSA) regulations regarding the various resources you are eligible to have.) ).
These are some frequently asked questions concerning money and bank accounts in relation to Social Security Income (SSI), such as whether monitors your bank account. In this article: