Like many legal situations whether owning assets will affect your eligibility for disability benefits is: “it depends”. In this case how owning assets affects qualification for disability benefits depends on which disability program you may be eligible for. There are two disability programs: Social Security Disability Insurance which is known as SSDI and Supplemental Security Income—commonly referred to as SSI.
SSDI pays benefits to you and certain members of your family if you are disabled and you worked long enough and paid Social Security taxes recently enough. SSI, on the other hand, is based on financial need. The Social Security Administration says, “It is designed to help aged, blind, and disabled people, who have little or no income.”
Many clients think that assets will affect their SSDI, when in truth, almost no assets affect SSDI.Qualifying for SSDI is based on your inability to work and your benefits payment is based onyour lifetime average earnings before you became disabled. SSDI payments are not affected by having a house, a car, money in the bank, or owning other possessions.
On the other hand, many SSI clients are surprised to learn that assets do affect their benefits. Social Security will take into consideration the amount of your assets, because it is a needs-based program. To be eligible for SSI, your assets must be less than $2,000 for an individual and less than $3,000 for a married couple. However, not all assets count towards the resource limits. The Social Security Administration lists 44 resource exclusions. The major exclusions are:
- Your home
- One automobile
- Household goods (furniture, etc.)
- Personal effects (jewelry, art work, etc.) as long as the SSI claimant is actually using the items.
- Up to $100,000 in an ABLE account
- Assets in a special needs trust
In addition to asset limitations, there are earned income and unearned income limits that you may not exceed. If you exceed the asset or income limits, Social Security may reduce or even potentially terminate your benefits.
The requirements for SSDI and SSI are complicated and Social Security has an application with many questions to determine your eligibility. If you are considering applying for Social Security disability benefits or if you applied and were turned down for benefits it is only natural that you will have many questions. Let the experienced disability attorneys at Cuddigan Law help you navigate the complicated and oftentimes confusing path to winning Social Security disability benefits. Call or email us today for a free evaluation of your case.
FAQs
The Truth About Savings Accounts and SSDI. Individuals in the Social Security Disability Insurance (SSDI) program receive long-term income because they are unable to work; the program does not place any limits on savings account amounts or other financial assets generally.
How much money can you have in the bank and still get social security disability? ›
An SSI lawyer at Liner Legal can help you to determine how much of an effect monthly income will have on your SSI benefits. Resources, including bank deposits, cannot exceed a total value of $2,000 for one person and $3,000 for couples who are married and residing together.
Can you be denied disability if you have money in the bank? ›
SSDI payments are not affected by having a house, a car, money in the bank, or owning other possessions. On the other hand, many SSI clients are surprised to learn that assets do affect their benefits. Social Security will take into consideration the amount of your assets, because it is a needs-based program.
How many bank accounts can you have on disability? ›
There is no limit to the number of bank accounts you can have while receiving SSI benefits. However, it is important to keep in mind that SSI benefits are based on financial need, and having a second bank account could affect your eligibility or the amount of benefits you receive.
Can I have a savings account while on social security disability? ›
If someone is applying for disability benefits, they may be relieved to learn that, yes, you can have a savings account while on Social Security disability.
Does disability look at your bank account? ›
In the case of Social Security Disability Insurance (SSDI), the SSA does not physically check bank accounts for asset limits. However, you may lose benefits if you have an increase in income or assets that is discovered during a review process.
What happens if you have more than $2000 in the bank on SSI? ›
Current beneficiaries who exceed the limits are suspended and then terminated from program participation if their savings remain above the limits, and they must repay any benefits paid while they are over the limit. SSI beneficiaries are limited to only $2,000 in assets of any kind.
How much can I have in the bank before it affects my benefits? ›
If you and/or your partner have £16,000 or more in savings, you won't be entitled to Universal Credit. If you and/or your partner have any savings or capital of between £6,000 and £16,000, the first £6,000 is ignored. The rest is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250.
What is the 5 year rule for social security disability? ›
Once your benefits stop, you have five years to reapply through expedited reinstatement and qualify for temporary payments while you wait for a decision. Each year, this five-year grace period helps thousands of workers get back on benefits slightly faster than if they started a new application from scratch.
What disqualifies you from social security? ›
Some American workers do not qualify for Social Security retirement benefits. Workers who don't accrue the requisite 40 credits (roughly 10 years of employment) are not eligible for Social Security. Some government and railroad employees are not eligible for Social Security.
WHAT IS THE RESOURCE LIMIT? The limit for countable resources is $2,000 for an individual and $3,000 for a couple.
What is the $3000 rule? ›
Rule. The requirement that financial institutions verify and record the identity of each cash purchaser of money orders and bank, cashier's, and traveler's checks in excess of $3,000.
What income is too high for SSI? ›
SSI is generally for individuals who don't earn more than $1,971 from work each month.
How to avoid being cut off SSI benefits when you get a sum of money? ›
Utilizing a “Spend Down” to Maintain SSI Benefits
If you're on SSI and recently received a large sum, you can utilize a “spend-down” to ensure that you remain with SSI's resource minimums. Per the SSA, a “spend-down” involves spending the cash that you've received until you're below the resource maximum.
Can you lose disability benefits if you inherit money? ›
Those with physical disabilities or mental health disabilities who qualify for SSDI can receive an inheritance without fear of losing out on any benefits.
Can Social Security find out if I have a savings account? ›
(a) To be eligible for SSI payments you must give us permission to contact any financial institution and request any financial records that financial institution may have about you. You must give us this permission when you apply for SSI payments or when we ask for it at a later time.
How much money can I make without affecting my Social Security in 2024? ›
How We Deduct Earnings From Benefits. In 2024, if you're under full retirement age, the annual earnings limit is $22,320. If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520.
How much can I have in my bank account before it affects my benefits? ›
If you and/or your partner have £16,000 or more in savings, you won't be entitled to Universal Credit. If you and/or your partner have any savings or capital of between £6,000 and £16,000, the first £6,000 is ignored. The rest is treated as if it gives you a monthly income of £4.35 for each £250, or part of £250.
Like many legal situations whether owning assets will affect your eligibility for disability benefits is: “it depends”. In this case how owning assets affects qualification for disability benefits depends on which disability program you may be eligible for. There are two disability programs: Social Security Disability Insurance which is known as SSDI and Supplemental Security Income—commonly referred to as SSI.