The Social Security Administration's Program Operations Manual System (POMS) contains thousands of pages of rules, regulations, and procedures. For SSI recipients and representative payees, finding the information that actually affects your daily life can feel impossible.
We spent weeks reading through SSA rules so you don't have to. Here are the ones that really matter.
In this article, we'll cover:
- The $2,000 resource limit and what counts
- How income affects your SSI payment
- Rep payee banking requirements
- Dedicated account rules for back payments
- Reporting requirements that trip people up
1. The $2,000 Resource Limit (And What Counts)
The most important rule for SSI recipients: you cannot have more than $2,000 in countable resources ($3,000 for couples). Go over this limit, even for one day, and you risk losing benefits.
What counts as a resource:
- Cash on hand
- Bank account balances
- Stocks, bonds, and investments
- A second vehicle
- Property you don't live in
What doesn't count:
- Your primary home
- One vehicle (regardless of value)
- Household goods and personal effects
- Burial plots and up to $1,500 in burial funds
- ABLE account balances up to $100,000
Important: SSA counts your resources on the first of each month. If you're over the limit on the 1st, you're ineligible for that month's payment—even if you spend down the same day.
2. How Income Affects Your SSI Payment
SSI uses a complex formula to reduce your payment based on income. Understanding the basics can help you plan.
Earned income (from work):
- First $65 is excluded
- After that, SSI reduces $1 for every $2 you earn
- Student earned income exclusion can protect more
Unearned income (gifts, other benefits):
- First $20 is excluded (general income exclusion)
- After that, SSI reduces $1 for every $1 received
In-kind support and maintenance:
- If someone pays your rent or gives you food, SSA may reduce your benefit
- The maximum reduction is about $334/month (one-third of federal benefit rate)
3. Rep Payee Banking Requirements
If you're a representative payee, SSA has specific rules about how you manage the beneficiary's money.
Required:
- Keep benefits in an account titled correctly (showing your payee status)
- Keep the beneficiary's funds separate from your own
- Use funds only for the beneficiary's current needs
- Save any remaining funds for future needs
- Keep records of all spending
- File annual accounting reports
Prohibited:
- Co-mingling funds with your personal money
- Using benefits for your own expenses
- Charging fees (unless you're an authorized organizational payee)
- Making loans from the beneficiary's funds
Important: Rep payee accounts must be titled to show the relationship. For example: "Jane Smith, rep payee for John Smith" or similar language that makes the arrangement clear.
4. Dedicated Account Rules for Back Payments
When a child on SSI receives a large back payment (over $150), SSA requires the money go into a dedicated account with strict spending rules.
Dedicated account funds can only be used for:
- Medical treatment and related expenses
- Education and job training
- Personal needs assistance
- Special equipment or modifications
- Therapy or rehabilitation
Dedicated account funds cannot be used for:
- Food
- Clothing
- Shelter
- Basic living expenses
Important: Violating dedicated account rules can result in penalties, repayment demands, and even removal as representative payee. Keep detailed records and receipts for every transaction.
5. Reporting Requirements That Trip People Up
SSI recipients and rep payees must report changes to SSA within 10 days. Failing to report—or reporting late—can result in overpayments you'll have to pay back.
Always report:
- Changes in income (starting, stopping, or changing jobs)
- Changes in living arrangements
- Changes in resources (inheritance, gifts, account balances)
- Changes in marital status
- Changes in address or phone number
- Leaving the U.S. for 30+ days
- Changes in the beneficiary's condition (for rep payees)
You can report changes by:
- Calling SSA at 1-800-772-1213
- Visiting your local SSA office
- Using your my Social Security account online
6. How Purple Helps You Stay Compliant
Purple was built with SSA rules in mind. Our accounts help SSI recipients and rep payees stay compliant without the stress.
With Purple, you can:
- Track your balance in real time to avoid going over resource limits
- Set up alerts when your balance approaches $2,000
- Get proper account titling for rep payee accounts
- Categorize transactions for easy record-keeping and annual reports
- Access early direct deposit so you know exactly when funds arrive
- Keep dedicated account funds separate with sub-accounts
- Export transaction history for SSA reporting
Understanding SSA rules shouldn't require a law degree. Purple makes it easier to manage benefits while staying within the guidelines.