Your bank account balance may have an impact on your eligibility for and ability to receive Social Security disability benefits. This usually pertains more to those who receive SSD benefits through the Supplemental Security Income program, which has eligibility requirements based on resource and income limitations. If the benefits you receive come from the Social Security Disability Insurance program, it won’t have as big of an impact on you.
An SSD lawyer at Liner Legal Disability Lawyers helps with more than just submitting the initial application for SSI or SSDI benefits or appealing a claim denial. In order to determine eligibility issues, such as having money in the bank, we also examine your financial situation and recommend options that may be available to you under federal Social Security laws. The following details could help you better understand how bank account balances affect SSDI and SSI benefits.
Navigating the complexities of Social Security benefits can be a daunting task, especially when it comes to understanding how your assets and resources impact your eligibility. One of the most common questions we receive is: “How much money can I have in the bank if I’m on Social Security?”
The answer, like many things in the world of government programs isn’t a simple one. It depends on which Social Security program you’re referring to – Supplemental Security Income (SSI) or Social Security retirement benefits. Let’s dive into the specifics of each program and how they treat your bank account balance.
Understanding SSI Resource Limits:
SSI is a needs-based program designed to provide financial assistance to low-income individuals with disabilities or who are aged 65 or older. When determining your eligibility for SSI, the Social Security Administration (SSA) considers your countable resources, which include your bank account balance.
SSI resource limits are currently $2,000 for single people and $3,000 for couples. This implies that you might not be qualified for SSI benefits if your countable resources—including the amount in your bank account—exceed these thresholds.
It’s important to note that not all assets are considered countable resources. For example, your home, one vehicle, and certain household goods and personal effects are exempt from the resource limit. Additionally, funds set aside in an Achieving a Better Life Experience (ABLE) account or under a Plan to Achieve Self-Support (PASS) may not count towards the resource limit.
Navigating Social Security Retirement Benefits:
Unlike SSI, Social Security retirement benefits are not based on financial need. Your eligibility for these benefits is determined by your work history and the amount of Social Security taxes you’ve paid throughout your working years.
Social Security retirement benefits are not subject to a specific resource limit, but any income from assets, such as interest on your bank account balance, may be taxed. This implies that if your overall income surpasses specific thresholds, you may be required to pay taxes on a portion of your Social Security benefits.
Maximizing Your Social Security Benefits:
It’s important to understand how your resources affect your eligibility whether you receive Social Security retirement benefits or SSI. Here are some tips to help you maximize your benefits:
- Keep track of your countable resources: Maintain accurate records of your assets, including your bank account balance, to ensure you stay within the resource limits for SSI.
- Explore resource exclusion options: Investigate whether any of your assets qualify for resource exclusion under SSI rules.
- Consult with a financial advisor: Seek professional guidance to understand how your financial situation impacts your Social Security benefits and explore strategies to optimize your income.
Recall that the data presented here is intended only for general knowledge and should not be regarded as specific financial advice. For personalized advice catered to your unique situation, it’s advisable to speak with a licensed financial advisor or get in touch with the Social Security Administration.
By understanding the resource limits and income considerations associated with Social Security programs, you can make informed decisions about managing your finances and maximizing your benefits.
Money In The Bank And SSDI
Because there are no resource limitations like there are with SSI, the SSDI program does not have a cap on the amount of money you can have in the bank. Even though you are eligible for SSDI and can keep as much money as you like in your bank account, Social Security may still inquire about it during the application process or during an ongoing review of your claim on a periodic basis.
The Social Security Administration may examine the funds in your bank account if you work while receiving SSDI benefits in order to assess if your monthly income surpasses the substantial gainful activity limit. It is a good idea to keep track of the source of deposits you make into your bank account, as the monthly limit for non-blind individuals is $1,350 in 2022 and $2,260 for those who qualify for benefits as statutorily blind. Speak with an SSDI lawyer at Liner Legal for more information about your bank deposits.
Money In The Bank And SSI
When receiving SSI benefits, bank account balances are more significant than they are under the SSDI program.
To qualify for Social Security disability through SSI, you must meet at least one of the following requirements:
- You must be at least 65 years of age.
- To meet the SSA standard, you have to be blind, either completely or partially.
- You must be unable to work due to a medically diagnosed physical or mental impairment that is expected to last at least a year or cause your death.
Meeting the medical or age criteria is only part of the process to qualify for SSI benefits. There are resource and income limits that you must not exceed.
Social Security benefits, earnings from employment, and food or housing provided by others are deducted from your monthly SSI benefits, which are $841 for single people and $1,261 for couples who qualify for SSI. You can get assistance from a Liner Legal SSI attorney in estimating the impact of your monthly income on your benefits.
The total value of resources, including bank deposits, cannot be more than $2,000 for an individual or $3,000 for a married couple living together. Some resources do not count toward the limits. For instance, unless you use your home as your primary residence, the value of the house you own would be considered a countable resource. A bank account is a countable resource, but whether the total resources exceed permitted limits is the question that an SSI attorney can answer.
A procedure called “deeming” may be used to determine a person’s eligibility for SSI based on money that a spouse or parent has in the bank. A portion of the bank account’s funds are considered resources by Social Security, which can be used by a child or spouse who is applying for or receiving SSI.
How much money can I have in the bank while receiving Social Security disability?
FAQ
How much money can you have in the bank and still get Social Security?
Does Social Security look at your bank account?
How much can a person on Social Security have in savings?
What happens if you have more than $2000 in the bank on SSI?
How much Social Security benefits do you get a month?
Are under full retirement age all year. You are entitled to $800 a month in benefits. ($9,600 for the year) You work and earn $32,320 ($10,000 more than the $22,320 limit) during the year. Your Social Security benefits would be reduced by $5,000 ($1 for every $2 you earned more than the limit).
How much SSI can a person own?
The Social Security Administration (SSA), which operates the program, sets different (and considerably more complex) limits on income for SSI recipients, and also sets a ceiling on financial assets: You can’t own more than $2,000 in what the SSA considers “countable resources” as an individual or more than $3,000 as a
What counts as income on social security?
What counts as income? People younger than full retirement age (67 for many) who are receiving Social Security retirement benefits can earn up to a certain amount from work before the Social Security Administration reduces their benefits. The limit is $22,320 in 2024.
How much money can a 66 year old earn on social security?
If you start collecting benefits before reaching full retirement age, you can earn a maximum of $18,960 in 2021 ($19,560 for 2022) and still get your full benefits. Once you earn more, Social Security deducts $1 from your benefits for every $2 earned. How much money can you make at 66 and draw Social Security?