Why SSI Recipients Are Losing Benefits—and How to Stop It

Every year, hundreds of thousands of people lose their Supplemental Security Income (SSI)—not because of fraud, but because of technical violations of confusing government rules.

Go over the $2,000 limit?

Forget to report income?

Deposit a tax refund in the wrong account?

Your benefits could be suspended or cut off—often without warning.

In this post, we’ll walk through:

1. The most common reasons people lose SSI

2. What happens when your benefits are suspended

3. How to avoid going over the asset limit

4. How Purple helps you stay compliant automatically

1. The Most Common Reasons People Lose SSI

The #1 reason is going over the $2,000 resource limit.

This limit applies to:

• Cash

• Bank accounts

• Prepaid card balances

• Stocks, crypto, and other assets

But here are other less obvious reasons people lose benefits:

• 💸 Unreported gifts from family or friends

• 💼 Wages or gig income not reported in time

• 🏠 Living situation changes (e.g., moving in with someone)

• 💰 Backpay or refunds deposited into the wrong account

• ⚠️ Missing SSA letters or failing to respond

• 🧾 Mixing funds from multiple sources in one account

SSA performs redeterminations and financial reviews, and even temporary violations can lead to problems.

2. What Happens If Your Benefits Are Suspended?

If SSA determines you’ve gone over the limit—or made another compliance mistake—they may:

• Suspend your monthly payments

• Demand repayment of past months’ checks

• Suspend Medicaid coverage tied to your SSI

• Launch an investigation or audit

• Remove your rep payee (if you have one)

Worst of all? Getting benefits reinstated can take weeks or months, and often requires an appeal or new application.

3. How to Avoid Going Over the Asset Limit

SSA’s 2025 asset limit is:

• $2,000 for individuals

• $3,000 for couples

To stay under that limit:

• ✅ Monitor your bank account balance daily

• ✅ Keep SSI and other funds in separate accounts

• ✅ Spend down excess funds before the end of the month

• ✅ Store backpay in a dedicated account

• ✅ Use an ABLE account for extra savings (up to $100,000 excluded)

• ✅ Report income and life changes to SSA right away

The problem? Most banks and apps don’t offer tools designed for this.

4. How Purple Helps Protect Your SSI Automatically

Purple was designed for people on SSI and their caregivers. We’ve read the rules—and we build for them.

Here’s how Purple helps you stay compliant:

• 💸 Alerts when you approach the $2,000 limit

• 🏦 Multiple accounts to separate backpay, personal, and benefit funds

• 📂 A built-in Vault to store SSA letters, receipts, and redetermination docs

• 👨‍👩‍👧 SSA-compliant titling for rep payee and dedicated accounts

• 🔐 Transparent records of every transaction for SSA reporting

• 🚀 Early deposit¹ so you don’t miss bills while staying under the limit

You shouldn’t lose benefits because your bank isn’t built for disability.

Stay in control. Get started with Purple today.

Purple is a financial technology company, not a bank. Banking services are provided by OMB Bank, Member FDIC. The Purple Mastercard® Debit Card is issued by OMB Bank, Member FDIC, pursuant to license from Mastercard.

¹ Early access is not guaranteed and depends on payer timing. We generally make funds available on the day we receive the payment file, which may be up to 4 days early for government benefits like SSI or SSDI, and up to 2 days early for other deposits. Early access is available at no additional cost.