Going over the SSI resource limit can be stressful, but it's not the end of the world. Here's what actually happens and what you can do about it.
In this article, we'll cover:
- What happens when you exceed the limit
- How SSA finds out
- What to do if you're over
- How to prevent future issues
1. What Happens When You Exceed the Limit
Immediate effects:
- You're ineligible for SSI that month
- Benefits suspended (not necessarily terminated)
- May receive an overpayment notice
- Medicaid may or may not continue (varies by state)
Suspension vs. termination:
- Suspension: Temporary pause in benefits
- Termination: Benefits end completely
- Brief overage usually leads to suspension
- Extended overage may lead to termination
The overpayment:
- If SSA paid you while over the limit
- They'll want that money back
- Can be deducted from future benefits
- May request waiver if hardship
2. How SSA Finds Out
Regular reviews:
- Continuing disability reviews
- Periodic financial reviews
- Random spot checks using AFI (Access to Financial Institutions)
The AFI system:
- SSA can check bank accounts
- You authorized this when you applied
- They compare your reported resources to actual accounts
- Discrepancies trigger reviews
Reporting:
- Others may report suspected fraud
- Banks report certain transactions
- Information matching with other agencies
- Routine verification processes
Your own reporting:
- You're supposed to report resource changes
- Failure to report makes things worse
- Better they hear from you first
- Self-reporting shows good faith
Important: SSA may not catch an overage immediately. This can lead to larger overpayments later.
3. What to Do If You're Over
Spend down immediately:
- Pay bills
- Buy necessities
- Contribute to ABLE account
- Get back under $2,000
Report the situation:
- Contact SSA
- Explain what happened
- Show you've corrected it
- Document everything
If you receive an overpayment notice:
- Don't panic
- Review the notice carefully
- Check if the calculation is correct
- You have options to respond
Overpayment options:
- Pay it back (lump sum or deductions)
- Request a waiver if hardship
- Appeal if you disagree
- Request reduced deduction rate
Requesting a waiver:
- Must show you weren't at fault
- AND recovery would be against equity
- OR defeat the purpose of the program
- Explain your circumstances
4. How to Prevent Future Issues
Track your resources:
- Know your balance at all times
- Check especially before the 1st
- Include all countable assets
- Don't forget savings accounts
Set up alerts:
- Create reminders before the 1st
- Track when you receive money
- Note when large expenses are due
- Stay proactive
Use an ABLE account:
- Contributions don't count up to $100,000
- Safe place for extra funds
- Tax-advantaged savings
- Accessible for qualified expenses
Plan ahead:
- Know when money is coming (back pay, gifts)
- Have a spend-down plan ready
- Don't accumulate money unnecessarily
- Think about timing
Build a system:
- Same routine each month
- Check balance before the 1st
- Keep a buffer below $2,000
- Document your resources
Understanding Overpayments
How they're calculated:
- SSA determines what you should have received
- Compares to what you actually received
- Difference is the overpayment
- Plus any period you were ineligible
Recovery methods:
- Withhold from current benefits (usually 10%)
- Lump sum payment
- Payment plan if not on benefits
- Tax refund intercept
Your rights:
- Appeal the overpayment decision
- Request a waiver
- Request a reduced withholding rate
- Ask for a personal conference
How Purple Helps
- Real-time resource tracking
- Alerts before the 1st of the month
- Clear balance visibility
- ABLE account integration
- Transaction history for documentation