It sounds extreme, but it's true: if you're on SSI and your bank account hits $2,001, the government can suspend your benefits. This outdated rule hasn't changed since 1989, and it catches thousands of people off guard every year.
In this article, we'll cover:
- The $2,000 rule explained
- Why this limit is so dangerous
- Legal ways to protect yourself
- How ABLE accounts change the game
- Using Purple to stay safe
1. The $2,000 Rule Explained
If you receive Supplemental Security Income (SSI), you must keep your "countable resources" below:
- $2,000 for individuals
- $3,000 for couples
What counts as resources:
- Cash
- Bank account balances
- Stocks and investments
- Extra vehicles
- Property (besides your home)
What doesn't count:
- Your home
- One vehicle
- Household goods
- Burial funds (up to $1,500)
- ABLE account funds (up to $100,000)
The SSA checks your balance on the first of each month. Even one day over the limit can cause problems.
2. Why This Limit Is So Dangerous
The limit hasn't changed since 1989. If it had kept up with inflation, it would be over $5,000 today.
Common ways people go over:
- Tax refund arrives
- Birthday or holiday gifts
- Selling something
- Back pay from SSA itself
- Small savings accumulate
What happens when you exceed the limit:
- SSI payments stop
- You receive an overpayment notice
- You may lose Medicaid
- You must prove you're back under the limit to restart benefits
Important: The SSA can check your bank statements at any time. They specifically look at your balance on the first of each month.
3. Legal Ways to Protect Yourself
You can stay under the limit legally:
Spend down before the first:
- Pay bills early
- Stock up on necessities
- Make needed purchases
- Prepay rent or utilities
Avoid accumulation:
- Don't use automatic savings features
- Pay bills promptly
- Be aware of your balance at all times
Use excluded resources:
- Prepay burial expenses
- Invest in your home
- Maintain your vehicle
Open an ABLE account:
- Save beyond $2,000 without penalty
- First $100,000 doesn't count toward SSI
4. How ABLE Accounts Change the Game
ABLE accounts are a game-changer for SSI recipients:
What is ABLE:
- Tax-advantaged savings account for people with disabilities
- Similar to a 529 college savings plan
- Funds don't count toward SSI's $2,000 limit
Key benefits:
- Save up to $18,000/year (2026 limit)
- First $100,000 excluded from SSI resources
- Tax-free growth
- Use funds for disability-related expenses
Who qualifies:
- Disability onset before age 46
- Currently receiving SSI/SSDI, OR
- Meet SSA's disability definition
What you can spend ABLE funds on:
- Housing and rent
- Transportation
- Education
- Healthcare
- Assistive technology
- And more
5. Using Purple to Stay Safe
Purple is built to help you navigate the $2,000 limit:
Balance tracking:
- See exactly where you stand
- Know your balance before the first of the month
Custom alerts:
- Get notified at $1,800, $1,900, or any amount
- Warning before you hit the danger zone
ABLE integration:
- Connect your ABLE account
- Move money to safety when needed
- Track both accounts in one place
No surprise fees:
- $0 monthly fee
- $0 overdraft fee
- Predictable finances
Transaction history:
- Clear records for SSA
- Easy to prove your spending
- Documentation when you need it