The $2,000 SSI asset limit is one of the most challenging rules for disability benefits recipients. Here's what you need to know and how people successfully manage it.
In this article, we'll cover:
- Understanding the limit
- What counts (and doesn't count)
- Strategies to stay under the limit
- ABLE accounts and special needs trusts
- Common questions
Understanding the Limit
The basic rule:
- Individuals: $2,000 maximum
- Couples: $3,000 maximum
- Counted on the 1st of each month
- Going over = no SSI that month
Why the limit exists:
- SSI is for people with limited resources
- Designed as safety net
- Means-tested program
- Different from SSDI (no limit)
What it means practically:
- Can't save more than $2,000
- Must spend down extra money
- Requires constant vigilance
- Limits financial security
The limit hasn't changed in decades:
- Set at $2,000 in 1989
- Not adjusted for inflation
- Would be ~$5,000+ if adjusted
- Advocates push for change
What Counts Toward the Limit
Counts as resources:
- Cash on hand
- Checking accounts
- Savings accounts
- Stocks and bonds
- Second vehicle
- Real estate (not your home)
- Life insurance over $1,500 face value
- Personal property you could sell
Does NOT count:
- Your home (primary residence)
- One vehicle (any value)
- Household goods and furniture
- Personal effects
- Burial plots for immediate family
- Up to $1,500 in burial funds
- ABLE account (first $100,000)
- Properly structured trusts
Strategies to Stay Under the Limit
Strategy 1: Time your spending
- Pay bills before the 1st
- Buy necessities before month end
- Don't accumulate balance
Example monthly plan:
- Get SSI on 1st
- Pay rent immediately
- Pay utilities
- Buy groceries and necessities
- Balance low by next 1st
Strategy 2: Invest in exempt resources
Your home:
- Home repairs count as spending
- Improvements are okay
- Build equity in your home
- Property taxes in advance
Your vehicle:
- One vehicle exempt
- Repairs and maintenance
- Insurance prepayment
- Fuel stockpile (reasonable)
Household items:
- Furniture you need
- Appliances
- Electronics for daily use
- Reasonable amounts
Strategy 3: Prepay expenses
- Rent (if landlord allows)
- Utilities
- Insurance premiums
- Medical expenses
- Phone/internet
Strategy 4: Pay down debt
- Credit card balances
- Medical bills
- Any legal debts
- Reduces resources immediately
ABLE Accounts
What is ABLE?
- Achieving a Better Life Experience Act
- Tax-advantaged savings account
- For people disabled before age 26
- First $100,000 doesn't count for SSI
ABLE account benefits:
- Save without affecting SSI
- You control the account
- Use for disability expenses
- Tax-free growth
ABLE contribution limits:
- Annual limit (2025: ~$18,000)
- Total limit varies by state
- Can receive gifts and contributions
- Working individuals may contribute more
What you can use ABLE for:
- Housing
- Transportation
- Education
- Health care
- Assistive technology
- Employment support
- Basic living expenses
How to open:
- Choose a state ABLE program
- Don't have to use your state's
- Compare fees and investments
- Apply online
Special Needs Trusts
For larger amounts:
- Inheritances
- Settlements
- Gifts
- Back pay
Types:
- First-party (your money)
- Third-party (others' money)
- Pooled trusts
Benefits:
- Unlimited amounts
- Professional management
- Supplemental needs
- Preserves SSI eligibility
Drawbacks:
- Cost to set up
- Need attorney
- Trustee required
- Rules to follow
Managing Irregular Income
When you receive lump sums:
- Tax refunds
- Back pay
- Gifts
- Settlements
What to do:
- Don't panic
- Spend down on allowable items
- Consider ABLE contribution
- Consider trust (large amounts)
- Document everything
Allowable spend-down:
- Debts
- Household needs
- Vehicle expenses
- Home repairs
- Prepaid expenses
Tips for Success
Stay organized:
- Track your balance weekly
- Know the count date (1st)
- Keep receipts for spending
- Use banking app alerts
Plan ahead:
- Before the 1st, check balance
- Budget for the month
- Don't wait until last minute
- Build spend-down into routine
Know the rules:
- Understand what's exempt
- Learn about ABLE accounts
- Know what counts as resources
- Ask SSA if unsure
Get help:
- Benefits counseling
- WIPA programs
- Legal aid for trusts
- Financial counseling
Common Questions
Can I have a bank account on SSI? Yes. You can have bank accounts—just keep total under $2,000.
What if I go over accidentally? You lose SSI for that month. Get back under the limit and you'll be eligible again.
Can I give money away to stay under? No. Giving away resources to stay eligible is against the rules and can cause problems.
Will SSA check my bank accounts? Yes. SSA does financial matching and checks accounts periodically.
Can I have retirement savings? Most retirement accounts count as resources. ABLE accounts are an exception.
Advocacy for Change
The limit is outdated:
- Set in 1989
- Not inflation-adjusted
- Keeps people in poverty
- Bipartisan support for increase
Proposed changes:
- SSI Savings Penalty Elimination Act
- Would raise limit to $10,000
- Adjust for inflation
- Contact your representatives
How Purple Helps
Purple helps you manage the SSI limit:
- See your balance in real time
- Track when you're getting close
- Get benefits early to pay bills
- No fees eating into your $2,000
- Simple balance monitoring
With Purple, staying under the SSI resource limit is easier.