Many SSI recipients wonder if they can save any money at all. The short answer: yes, but with strict limits. Here's how savings work with SSI.
In this article, we'll cover:
- The savings limit explained
- What counts as resources
- Legal ways to save more
- ABLE accounts
- Common mistakes to avoid
The SSI Savings Limit
The basic rule:
- Individual: $2,000 maximum resources
- Couple: $3,000 maximum resources
- Counted on the 1st of each month
- Going over = losing SSI that month
What this means:
- Your total savings can't exceed $2,000
- Includes all bank accounts
- Includes cash on hand
- Checked monthly by SSA
Why the limit exists:
- SSI is for people with limited resources
- Means-tested program
- Different from SSDI (no limit)
- Set in 1989, not inflation-adjusted
What Counts Toward the $2,000 Limit
Counts as resources:
- Checking account balances
- Savings account balances
- Cash on hand
- Stocks and bonds
- Mutual funds
- Second vehicle
- Real estate (not your home)
- Life insurance over $1,500 face value
- Personal property you could sell
Does NOT count:
- Your home (primary residence)
- One vehicle (any value)
- Household goods and furniture
- Personal effects (clothes, etc.)
- Burial plots for immediate family
- Up to $1,500 in burial funds (set aside)
- ABLE account (first $100,000)
- Properly structured special needs trusts
How SSA Checks Your Resources
Monthly count:
- Resources counted on the 1st
- If over $2,000 on the 1st = ineligible that month
- Even $1 over counts
- Multiple accounts added together
How SSA finds out:
- Financial institution matching program
- Annual redetermination reviews
- Reports from banks
- Tips and reports
What happens if over:
- No SSI for that month
- If you received payment, it's an overpayment
- You'll have to repay it
- Benefits resume when back under limit
Legal Ways to Save More
ABLE Accounts (Best Option)
What is ABLE:
- Achieving a Better Life Experience Account
- Tax-advantaged savings for disabled individuals
- First $100,000 doesn't count for SSI
- You control the money
Who qualifies:
- Disability began before age 26
- Meet SSI or SSDI disability definition
- Or certain other criteria
ABLE benefits:
- Save up to $100,000 without affecting SSI
- Tax-free growth
- Use for qualified disability expenses
- You manage the account
What you can use ABLE for:
- Housing
- Transportation
- Education
- Healthcare
- Assistive technology
- Employment support
- Basic living expenses
How to open:
- Choose any state's ABLE program
- Don't have to use your state's
- Apply online
- Compare fees and investment options
Burial Fund Exclusion
How it works:
- Set aside up to $1,500 for burial
- Must be separately identifiable
- Doesn't count toward $2,000 limit
- Can be in savings account marked for burial
Setting it up:
- Open separate savings account
- Designate it "burial fund"
- Keep under $1,500
- Interest stays in account
Spending Down Wisely
Before the 1st of month:
- Pay bills in advance
- Buy needed items
- Prepay rent if allowed
- Stock up on necessities
What you can spend on:
- Rent and utilities
- Vehicle repairs (one vehicle exempt)
- Home repairs (home exempt)
- Household items
- Medical expenses
- Debt payments
What NOT to do:
- Give money away (transfers for less than fair value)
- Hide money
- Put money in someone else's account
- Make purchases just to spend down
Property That Doesn't Count
Invest in exempt resources:
- Home improvements
- Vehicle repairs/upgrades
- Household furniture
- Necessary appliances
- Personal items for daily use
Example:
- Need new refrigerator → buy it before the 1st
- Car needs repairs → get them done
- Home needs maintenance → spend on that
Special Needs Trusts
For larger amounts:
- Inheritances
- Legal settlements
- Gifts from family
Types:
- First-party (d)(4)(A) trust
- Third-party special needs trust
- Pooled trusts
Benefits:
- No limit on amount
- Doesn't count for SSI
- Professional management
- Pays for supplemental needs
Drawbacks:
- Requires attorney to set up
- Costs money
- Must have trustee
- First-party trusts: Medicaid payback required
Common Mistakes to Avoid
Mistake 1: Thinking "under $2,000 on average"
- It's not an average
- It's the balance on the 1st
- One day over counts
- Check balance before the 1st
Mistake 2: Forgetting about all accounts
- Every account counts
- Joint accounts count (your portion)
- PayPal/Venmo balances count
- Cash counts
Mistake 3: Giving money away
- Transfers for less than fair value are prohibited
- Can affect eligibility
- SSA investigates these
- Not a legitimate way to reduce resources
Mistake 4: Putting money in someone else's account
- SSA can still investigate
- May be considered your resource
- Can cause legal problems
- Not a solution
Mistake 5: Not setting up ABLE account
- If you qualify, this is the best option
- Free to open
- Legal way to save $100,000
- Many people don't know about it
Tips for Managing Resources
Track everything:
- Monitor all accounts weekly
- Know balance before the 1st
- Include cash in your count
- Use banking app alerts
Spend strategically:
- Time bills to reduce balance before 1st
- Prepay expenses when possible
- Buy necessities before month end
- Don't accumulate extra balance
Plan for windfalls:
- Tax refunds
- Back pay
- Gifts
- Spend down quickly and wisely
Get help if needed:
- Benefits counselors
- ABLE account advisors
- Legal aid for trusts
- WIPA programs
Common Questions
Can I have any savings at all? Yes, up to $2,000 for individuals. Plus up to $100,000 in an ABLE account if you qualify.
Does my spouse's savings count? If you're both on SSI, you share the $3,000 couple limit. If only one receives SSI, rules are more complex—contact SSA.
What if I accidentally go over? You lose SSI for that month. Get back under the limit, and you're eligible again the next month.
Will SSA know about my bank account? Yes. SSA has access to bank records through financial matching programs.
Can I have a retirement account? Most retirement accounts count as resources. ABLE accounts are the exception for tax-advantaged savings.
How Purple Helps
Purple helps you manage the SSI resource limit:
- See your balance clearly anytime
- Track spending easily
- Get benefits up to 4 days early
- No fees reducing your $2,000
- Stay organized and in control
With Purple, managing savings while on SSI is simpler.