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How to Avoid Losing Your SSI Benefits Due to Bank Account Limits

If you receive SSI, your bank account balance matters. Go over $2,000 (or $3,000 for couples) and you could lose your benefits. Here's how to manage your money and stay within the limits.

In this article, we'll cover:

  1. Understanding the SSI resource limit
  2. What counts toward the limit
  3. Strategies to stay under $2,000
  4. What happens if you go over
  5. Exempt resources you can have

Understanding the SSI Resource Limit

The basics:

  • Individual limit: $2,000
  • Couple limit: $3,000
  • Counted on the 1st of each month
  • Includes cash, bank accounts, and other resources

Why it matters:

  • Go over and you lose SSI for that month
  • Repeated violations can end benefits
  • SSA checks periodically
  • Honesty is the best policy

What SSA looks at:

  • All bank accounts in your name
  • Cash on hand
  • Investments
  • Some property
  • Anything you could convert to cash

What Counts Toward the Limit

Counts as a resource:

  • Checking accounts
  • Savings accounts
  • Cash at home
  • Stocks and bonds
  • Second vehicles
  • Vacation homes
  • Retirement accounts (usually)

Does NOT count:

  • Your home (primary residence)
  • One vehicle
  • Household goods and furniture
  • Personal effects
  • Burial plots
  • Up to $1,500 in burial funds
  • Life insurance under $1,500 face value

Strategies to Stay Under $2,000

Strategy 1: Time your spending

  • Pay bills before the 1st
  • Buy necessities before month end
  • Don't let balance accumulate

Strategy 2: Spend on exempt items

  • Home repairs and improvements
  • Vehicle maintenance
  • Household goods you need
  • Medical expenses

Strategy 3: Prepay expenses

  • Prepay rent (if landlord allows)
  • Prepay utilities
  • Buy needed items in advance
  • Stock up on household supplies

Strategy 4: ABLE account

  • Save up to $100,000 without affecting SSI
  • Must have disability before age 26
  • Can use for disability-related expenses
  • Separate from regular bank account

Strategy 5: Special needs trust

  • For larger amounts
  • Must be properly structured
  • Needs legal assistance to set up
  • Good for inheritances

What to Do Each Month

Before the 1st:

  • Check your bank balance
  • Pay any bills you can
  • Buy needed items
  • Reduce balance below $2,000

On the 1st:

  • Your balance should be under the limit
  • This is when SSA "counts" resources
  • Screenshot your balance for records

Throughout the month:

  • Track your balance
  • Plan major expenses
  • Don't accumulate too much
  • Spend down if getting close

What Happens If You Go Over

First offense:

  • You lose SSI for that month
  • Must get back under limit
  • Benefits resume when compliant
  • May need to repay overpayment

Repeated violations:

  • More serious consequences
  • Longer benefit suspensions
  • Potential fraud investigation
  • Could lose benefits entirely

If you receive an overpayment notice:

  • You may have gone over the limit
  • You'll need to repay
  • Can request waiver if not your fault
  • Can appeal if you disagree

Exempt Resources in Detail

Your home:

  • Primary residence is exempt
  • No matter the value
  • Property you live in
  • Land it sits on

One vehicle:

  • One car, truck, or van
  • Used for transportation
  • Any value
  • Additional vehicles count

Household goods:

  • Furniture, appliances
  • TVs, computers
  • Clothing, dishes
  • Normal household items

Personal effects:

  • Jewelry (within reason)
  • Personal items
  • Sentimental items

Burial-related:

  • Burial plots for you and family
  • Up to $1,500 burial fund per person
  • Designated burial account
  • Prepaid funeral (irrevocable)

When You Receive Extra Money

Lump sums:

  • Tax refunds
  • Back pay
  • Gifts or inheritances
  • Must spend down quickly

What to do:

  • Spend on exempt items fast
  • Pay off debts
  • Buy needed things
  • Consider ABLE account

Report to SSA:

  • Large deposits must be reported
  • Even if you spend it down
  • Be honest about source
  • Keep documentation

How Purple Helps

Purple helps you manage the SSI limit:

  • See your balance easily
  • Track when you're getting close
  • No fees eating into your benefits
  • Get early access to spend down sooner
  • Simple balance tracking

With Purple, you can stay on top of your balance and protect your SSI benefits.

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Purple is a financial technology company, not a bank. Banking services are provided by OMB Bank, Member FDIC.