If you receive Supplemental Security Income, you've probably spent more time than you'd like thinking about the $2,000 resource limit. Cross that line—even briefly, even accidentally—and you risk losing your benefits. But the rules about what actually counts as a resource are more nuanced than many people realize. Understanding what's included and what's excluded can help you manage your finances without constantly fearing you'll trip over an invisible wire.
In this article, we'll cover:
- What the SSI resource limit actually means
- Resources that count toward the $2,000 limit
- Resources that are excluded from the count
- How Social Security checks your resources
- What happens if you go over the limit
- Strategies for staying compliant
What the Resource Limit Means
For SSI eligibility, you can't have more than $2,000 in countable resources if you're single, or $3,000 if you're married and your spouse also receives SSI. This limit hasn't changed since 1989—if it had kept pace with inflation, it would be over $5,000 today.
Resources are things you own that could be converted to cash and used for food or shelter. The key word is "countable"—not everything you own counts toward this limit. Social Security excludes certain types of property, which creates legitimate opportunities to own things of value without jeopardizing your benefits.
The resource limit is checked on the first day of each month. If your countable resources exceed the limit on the first of any month, you're ineligible for SSI for that month. It doesn't matter if you were under the limit for the rest of the month—what matters is where you stood on day one.
What Counts Toward the Limit
The following generally count as resources and contribute to your $2,000 limit:
Cash on hand: Any physical cash you possess counts, no matter where you keep it.
Bank accounts: Checking accounts, savings accounts, money market accounts, and certificates of deposit all count. The full balance counts, even if some of it is earmarked for bills.
Stocks, bonds, and investments: Brokerage accounts, mutual funds, individual stocks, and other investment holdings count at their current market value.
Cash value life insurance: If you have life insurance policies with a combined face value over $1,500, the cash surrender value counts as a resource. Term life insurance (which has no cash value) doesn't count.
Real property other than your home: Vacation homes, rental properties, or land you own (other than your primary residence) count at their equity value.
Additional vehicles: If you own more than one vehicle, the additional vehicles may count (though there are important exceptions we'll discuss below).
Personal property held for investment: Items you're holding primarily for their value rather than use—like a coin collection or art held for appreciation—may count.
What Doesn't Count
These resources are excluded from the $2,000 calculation:
Your home: The house or apartment where you live doesn't count, regardless of its value. This is your most valuable exclusion. The land your home sits on is also excluded, within reasonable limits.
One vehicle: One automobile is completely excluded regardless of value. If you have more than one vehicle, the additional vehicles may be excluded if they're needed for employment, modified for disability, or used for essential transportation like medical appointments.
Household goods and personal effects: Furniture, clothing, appliances, electronics you use personally—these don't count. The rule used to cap this exclusion, but now all household goods and personal effects are excluded regardless of value.
Burial funds: Up to $1,500 set aside specifically for burial expenses is excluded for you, and another $1,500 for your spouse. Burial plots, caskets, and other burial spaces are also excluded.
Property essential for self-support: If you own property you need to earn income—like tools for your trade, equipment for a business, or land you farm—it may be excluded under PESS (Property Essential to Self-Support) rules.
ABLE account funds: Up to $100,000 in an ABLE account doesn't count toward the SSI resource limit. This is one of the biggest benefits of having an ABLE account.
Retroactive SSI or SSDI payments: If you receive a lump sum of back benefits, those funds are excluded for 9 months from the month you receive them. This gives you time to spend down or convert the money without losing eligibility.
Tax refunds and credits: Earned Income Tax Credit payments and certain other tax refunds are excluded for 12 months after you receive them.
Disaster relief assistance: Payments from FEMA or other disaster assistance are generally excluded.
How Social Security Checks Your Resources
Social Security uses several methods to verify your resources:
Your reports: You're required to report your resources and any changes. When you apply for SSI and during redeterminations, you'll provide information about your bank accounts, property, and other assets.
Financial institution matching: Social Security has agreements with banks and financial institutions to verify account information. They can and do check whether the account balances you report match what the banks show.
Asset verification systems: Social Security uses automated systems to identify unreported accounts or property.
Third-party information: Information from other sources—like real estate records, vehicle registrations, or reports from other government agencies—can flag potential resources.
If there's a discrepancy between what you've reported and what Social Security discovers, they'll ask you to explain. Honest mistakes can usually be resolved, but intentional misrepresentation is fraud and has serious consequences.
What Happens If You Go Over
If your countable resources exceed $2,000 on the first of a month, you're ineligible for SSI for that month. You won't receive a payment, and if you've already received one, it becomes an overpayment you'll need to repay.
If you're over the limit for multiple consecutive months, your case may be suspended. If you're over the limit for 12 consecutive months, your SSI eligibility can be terminated entirely—meaning you'd need to reapply and go through the determination process again.
Going over the limit also affects your Medicaid eligibility in most states, since SSI eligibility automatically qualifies you for Medicaid. Losing SSI can mean losing your health coverage too.
If you realize you've gone over the limit, the most important thing is to spend down below $2,000 before the first of the next month and report the situation to Social Security. Don't try to hide it—the consequences for fraud are far worse than the consequences for an honest mistake.
Strategies for Staying Compliant
Track your balance throughout the month: Don't wait until the last day to check whether you're under the limit. Monitor your accounts regularly so you have time to adjust.
Spend down strategically before month-end: If you're approaching the limit, use the money for allowable purposes—pay bills early, stock up on groceries, make needed purchases, or prepay expenses you know are coming.
Use an ABLE account: If you're eligible for an ABLE account, funds there don't count toward the $2,000 limit (up to $100,000). This is the most straightforward way to save money without risking your benefits.
Convert resources to excluded property: Buying household goods, making home improvements, or prepaying burial expenses converts countable cash into excluded property.
Understand timing of income: Know when your benefits, paychecks, or other income will hit your account, and plan accordingly. A deposit that arrives on the last day of the month is very different from one that arrives on the first.
Be careful with gifts and windfalls: If someone gives you money or you receive an unexpected lump sum, it becomes a countable resource immediately. Have a plan for spending it down or moving it to an ABLE account before the next month begins.
Purple was built to help with exactly this challenge. Our checking account for SSI recipients helps you track your resources in real time, so you always know where you stand against the $2,000 limit.