The $2,000 resource limit on SSI creates an impossible situation: you're expected to survive on minimal benefits while being prohibited from saving for emergencies, goals, or the future. But there are legitimate ways to build savings without jeopardizing your benefits.
In this article, we'll cover:
- Why SSI's resource limit makes saving so difficult
- What counts (and doesn't count) toward the $2,000 limit
- How ABLE accounts let you save up to $100,000
- Other strategies for building financial security on SSI
- Common mistakes that accidentally put benefits at risk
The $2,000 Trap
SSI limits countable resources to $2,000 for individuals and $3,000 for couples. Exceed this limit by even one dollar on the first of any month, and your benefits stop. This rule forces SSI recipients into perpetual financial insecurity—unable to save for a car repair, a security deposit, or any unexpected expense.
The limit hasn't kept pace with inflation and hasn't been meaningfully updated in decades. What might have seemed reasonable in the 1980s is now a poverty trap that prevents any real financial progress.
What Doesn't Count Toward the Limit
Not everything you own counts as a resource. Understanding exclusions helps you maximize what you can have:
Your home is excluded if you live in it, regardless of value.
One vehicle is excluded regardless of value.
Household goods and personal effects like furniture, clothing, and appliances don't count.
Life insurance with a face value under $1,500 is excluded.
Burial funds up to $1,500 set aside specifically for burial expenses don't count.
Property essential for self-support used in a trade or business may be excluded.
These exclusions mean you can own a home and car, furnish your living space, and set aside modest burial funds—all without affecting SSI.
ABLE Accounts: The Game-Changer
ABLE accounts are the most powerful savings tool for SSI recipients. These tax-advantaged accounts allow you to save up to $100,000 without any of it counting toward SSI's resource limit.
To qualify, your disability must have begun before age 46. If you receive SSI or SSDI, you automatically meet the disability requirement.
You can use ABLE funds for qualified disability expenses including housing, transportation, education, healthcare, assistive technology, job training, and much more. The broad definition of qualified expenses makes ABLE accounts practical for both saving and spending.
Opening an ABLE account is straightforward—you can enroll through any state's program regardless of where you live. Many programs have low minimums and offer debit cards for easy access to funds.
Other Savings Strategies
Plan to Achieve Self-Support (PASS): If you have income or resources and want to work toward employment, a PASS lets you set aside money for work-related goals without it counting against SSI.
Irrevocable burial trusts: Beyond the $1,500 burial fund exclusion, you can prepay funeral expenses through an irrevocable burial trust, removing those funds from countable resources.
Spending strategically: While not true "saving," timing large purchases for the end of the month (after SSA's resource check on the first) gives you more flexibility to manage cash flow.
Mistakes That Risk Your Benefits
Keeping too much in checking: Your bank balance counts on the first of the month. If benefits arrive and push you over $2,000 before you've paid bills, you could lose eligibility.
Receiving gifts or inheritance: Money from others counts immediately. If family wants to help, directing funds to an ABLE account or special needs trust protects your benefits.
Joint accounts: Money in a joint account may be presumed to be yours. Be careful about accounts shared with family members.
Forgetting about all accounts: SSA counts all your accounts, including old savings accounts you may have forgotten about.
Building financial security on SSI requires strategy. Purple helps you monitor resources with a checking account designed for SSI recipients.