We Read 100+ SSA Rules So You Don’t Have To. Here’s What Matters.
- Purple
- Aug 26
- 2 min read
SSA’s Program Operations Manual System (POMS) is over 11,000 pages long. And if you’re receiving SSI, SSDI, or managing a rep payee account, it matters.
The problem? Most of these rules are hidden behind dense language, government jargon, and conflicting examples.
At Purple, we’ve combed through the POMS, consulted with attorneys, partnered with bank compliance teams, and helped real families navigate audits, redeterminations, and backpay challenges.
Here are the 5 rules that matter most—and how we’re building banking tools to help you stay compliant.
1. The $2,000 Rule (Asset Limit)
If you receive Supplemental Security Income (SSI), your total “countable resources” can’t exceed $2,000 (or $3,000 for couples). That includes your bank balance unless the money is protected.
What banks get wrong:
No alerts when you’re near the limit
Automatic savings features that push users over
No ABLE account integration or protection
Why it matters: Going over—even by a small amount—can cause suspension of benefits and Medicaid loss.
2. Rep Payee Titling Rules
SSA requires rep payee accounts to be titled like:
[Beneficiary’s Name] by [Your Name], Representative Payee
This makes it clear the funds belong to the recipient, not the payee.
What banks get wrong:
Titling accounts incorrectly (or refusing to support it)
Opening personal checking accounts for rep payees
Not understanding SSA compliance requirements
Why it matters: Improper titling can trigger fraud reviews, benefit pauses, or legal issues during SSA audits.
3. Dedicated Accounts for Minor Backpay
If a child under 18 receives more than 6 months’ worth of SSI backpay, the funds must go into a dedicated accountwith strict rules:
It must be separate
It must be interest-bearing
It can only be used for certain expenses, like education or medical care
What banks get wrong:
Not offering dedicated account structures
Allowing funds to be combined
Failing to flag restrictions to payees
Why it matters: Misuse of dedicated funds can lead to repayment demands, benefit loss, or court involvement.
4. Countable Income Includes Almost Everything
SSA counts most income—wages, child support, gifts, refunds—against your benefits unless it’s exempt.
What banks get wrong:
Depositing multiple income sources into a single account
Failing to separate “countable” vs “excluded” income
No documentation or tracking tools
Why it matters: Without clear tracking, families often misreport income during redeterminations, leading to overpayments or penalties.
5. Recordkeeping Isn’t Optional
SSA expects rep payees to:
Keep receipts and records of all spending
Track balances and transfers
Justify large purchases or cash withdrawals
Submit annual reports (or in-person audits)
What banks get wrong:
No way to save receipts or tag transactions
No built-in compliance workflows
No Vault for storing SSA communications
Why it matters: Poor documentation is the #1 reason rep payees get flagged for misuse or fraud.
Purple Was Built to Follow These Rules—So You Don’t Have To
We designed Purple from the ground up for SSA compliance and disability-specific banking. That means:
Balances that flag asset-limit risk
SSA-compliant titling for rep payee and dedicated accounts
Early direct deposit (up to 4 days early¹)
A secure Vault to store receipts, SSA letters, and spending notes
Multiple accounts to separate backpay, SSI, SSDI, and more