For many individuals, Supplemental Security Income (SSI) is a lifeline that provides much-needed financial support. If you’re living with a disability, blindness, or are over 65 with limited income and resources, you may qualify for these benefits. But understanding the rules around bank balances and assets is crucial to ensure you remain eligible for this assistance. Here’s what you need to know to navigate the complexities of SSI and safeguard your benefits.
Understanding SSI Resource Limits
One of the key factors in maintaining SSI eligibility is managing your countable resources. The asset limit for individuals is $2,000, while for couples, it’s $3,000. This means if your bank balance or other countable assets exceed these amounts, you could lose your benefits. It’s a strict threshold, but knowing what’s included—and what’s not—can make all the difference.
What Counts as an Asset?
Countable resources typically include things like cash, money in bank accounts, stocks, and certain property. But not everything you own is counted toward these limits. The good news is that SSI has some exclusions:
- Your Home and Land: The house you live in, along with the land it sits on, is not counted as a resource.
- Your Vehicle: If you or a member of your household uses a car for transportation, that vehicle is also excluded.
- Personal Items: Household goods, personal effects, and even wedding and engagement rings are not counted.
- Life Insurance: Policies with a combined face value of $1,500 or less are excluded.
- Burial Funds and Spaces: Up to $1,500 set aside for burial expenses and burial spaces for you or your immediate family are also not counted.
Special Savings Options: ABLE Accounts
For those with disabilities, Achieving a Better Life Experience (ABLE) accounts offer a significant way to save money without impacting SSI benefits. You can save up to $100,000 in an ABLE account, and these funds won’t be counted toward your resource limit. This is a fantastic option for those who want to save for future needs like education, housing, or transportation.
What Happens If You Exceed the Limit?
If your resources go over the limit, even by a small amount, you won’t be eligible for SSI that month. However, there are some exceptions. For instance, if you’re in the process of selling certain assets, like a piece of property, you might qualify for conditional benefits. This allows you to receive SSI temporarily while you liquidate those assets, though you might have to repay any benefits received over the limit.
Avoiding Penalties: Don’t Hide Resources
It’s important to be transparent about your resources. If you try to hide assets by giving them away or selling them for less than their market value, you could be penalized. The penalty period can last up to 36 months, depending on the value of the transferred assets. During this time, you may be disqualified from receiving SSI benefits, which can be devastating.
Why This Matters
The asset limits for SSI have not changed since 1989, making it challenging for many people to maintain financial stability while relying on these benefits. There have been discussions about increasing the asset limits or updating income disregards to better reflect today’s economic realities. Until these changes happen, it’s crucial for SSI recipients to manage their resources carefully to avoid losing essential benefits.
Tips for Managing Your Resources
- Track Your Spending: Regularly monitor your bank balances and other assets to ensure they stay within the allowable limits.
- Use Excluded Resources Wisely: Consider using an ABLE account or setting aside funds for burial expenses to manage your resources without affecting SSI eligibility.
- Seek Advice: If you’re unsure about your resource levels or how they affect your benefits, consult with a financial advisor familiar with SSI rules.
Supplemental Security Income has a $2,000 asset limit that penalizes savings and investments that are critical to financial stability.
— Social Security Works (@SSWorks) February 20, 2024
These strict limits haven’t been updated since 1989.
It’s time to #UpdateSSI
Staying within the resource limits can be tricky, but with careful planning and a good understanding of the rules, you can maintain your eligibility and continue to receive the support you need. After all, SSI is here to help—don’t let your bank balance get in the way of the benefits you deserve.