How to Set Up a Compliant Rep Payee Account for SSI or SSDI
- Purple
- Sep 21
- 2 min read
If you’ve been appointed as a representative payee by the Social Security Administration (SSA), you’re responsible for managing someone else’s money—often a person receiving SSI or SSDI.
But here’s what most people don’t know: opening a standard bank account is not enough. The SSA has specific rules, titling requirements, and documentation expectations for rep payee accounts.
In this article, we’ll walk through:
What a representative payee account is
SSA’s requirements for how the account must be titled
Which banks support compliant rep payee accounts
Common mistakes that can trigger audits or suspensions
How Purple makes rep payee banking simple and compliant
1. What Is a Representative Payee Account?
A representative payee account is a bank account used to manage government benefits (like SSI or SSDI) on behalf of someone who cannot manage their own money due to age, disability, or mental capacity.
As a rep payee, you must:
Use the money for the benefit of the individual
Keep funds separate from your own
Maintain accurate records
Report spending to the SSA (via annual reviews or on request)
2. SSA Requires Special Account Titling
The SSA requires that the account be titled to reflect ownership by the beneficiary and management by the payee. Here’s the official format:
[Beneficiary’s Name] by [Your Name], Representative Payee
For example:
Jamie Garcia by Lisa Smith, Representative Payee
This format makes it clear that:
The beneficiary owns the funds
You are managing the funds
The money is protected in case of legal or financial issues
If the account is just in your name—or in joint ownership—it may violate SSA rules.
3. Not All Banks Understand These Rules
Most traditional banks are not trained on SSA account titling requirements. As a result:
Some banks open the account in the payee’s name only
Others list it as a joint account, which is incorrect
Many don’t allow the proper titling structure at all
This creates risk: if SSA reviews the account and sees improper titling, the payee may face benefit suspensions, and the rep payee may be removed or investigated.
4. Mistakes That Trigger Problems with SSA
Here are common issues we’ve seen from families and caregivers:
Using your own personal checking account
Depositing funds into joint accounts
Mixing funds from multiple beneficiaries
Failing to keep spending records or receipts
Not setting up a separate account for backpay or dedicated funds
If SSA suspects misuse or poor recordkeeping, they may request documentation, freeze payments, or launch an investigation.
5. How Purple Simplifies Rep Payee Banking
Purple is built specifically for people with disabilities and their caregivers. That means our account setup process includes:
✅ SSA-compliant account titling for rep payees
✅ Options to open multiple accounts (dedicated, personal, discretionary)
✅ A secure Vault to upload receipts, SSA letters, and spending notes
✅ Clear transaction tracking for annual SSA reporting
✅ Customer support that understands SSA rules
You don’t need to explain SSA guidelines to us—we design for them.