Money and Social Security Disability

Understanding Social Security Disability Benefits

Social Security Disability benefits, known formally as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI), provide financial assistance to individuals who are unable to work due to a disability. These programs, although both offer support to people with disabilities, have different requirements and rules regarding personal finances.

Differences between SSDI and SSI

1. SSDI: This program is based on your work history and the Social Security taxes you have paid over the years. If you have worked long enough and paid enough into Social Security, you will generally qualify for SSDI. The benefits are not directly affected by other resources such as money in the bank.

2. SSI: SSI, on the other hand, is a need-based program designed to help individuals with limited income and resources. Eligibility is determined by both financial need and disability status. Therefore, money in the bank can indeed impact your eligibility and the amount you receive under SSI.

How Money in the Bank Affects SSI

Since SSI eligibility is based on financial need, having money in the bank can affect your eligibility and benefit amounts. Here’s how:

Resource Limitations

SSI imposes resource limits on beneficiaries. As of the latest updates:

• Individuals can have up to $2,000 in countable resources.
• Couples can have up to $3,000 in countable resources.

Resources include cash, bank accounts, stocks, bonds, and property other than your primary residence. If your resources exceed these limits, you may not qualify for SSI or may receive a reduced benefit.

What Counts as Resources?

The Social Security Administration (SSA) considers various items as resources that must fall under the allowable limits for SSI eligibility. Here's a breakdown:

• Bank Accounts: Savings and checking account balances are considered countable resources. Any money deposited beyond daily living expenses and within the monthly limits could jeopardize eligibility for SSI.

• Investments: Stocks, bonds, and mutual fund holdings count towards your resource limit.

• Life Insurance: If you have the ability to cash in your life insurance policies, they may count towards your limit depending on the face value of the policy.

• Property: Any real estate other than your primary residence can affect SSI eligibility, as it is considered a countable resource.

Exclusions and Exceptions

Certain resources are excluded when determining eligibility for SSI:

• The home you live in
• One vehicle, if it is used for transportation
• Household goods and personal items
• Burial plots and up to $1,500 in burial funds
• Certain other exclusions may apply based on specific circumstances.

Monitoring Your Resources

To maintain eligibility for SSI, you must continually monitor your resources to ensure they do not exceed the allowable limit. If your resources increase above the allowable threshold, you should report this to the SSA to avoid overpayments or other issues.

Process for Reporting Changes

Here is how you can report changes to SSA:

1. Direct Contact: You can report changes by calling or visiting your local SSA office. It is advisable to keep records of any communication with the SSA, such as confirmation letters or any documents submitted.

2. Online Reporting: Some changes can be reported through the SSA’s online services, especially if you have set up a personal Social Security account online.

3. Timeliness: Promptly report changes in your financial resources. The SSA mandates that changes be reported within 10 days after the end of the month in which the change occurred.

How Money in the Bank Affects SSDI

The SSDI program, unlike SSI, is based primarily on your work history and the number of Social Security credits you have accumulated. Therefore, the amount of money you have in the bank or other resources does not affect your benefit eligibility or amount directly. However, there are some considerations:

Income from Work

While resources don’t impact SSDI, income from work does. SSDI has strict guidelines for what is considered Substantial Gainful Activity (SGA). If you earn more than the SGA limit, you may lose eligibility for SSDI.

• As of the latest guidelines, earning more than $1,470 per month (or $2,460 for blind individuals) from work could affect your SSDI eligibility.

The Trial Work Period

SSDI beneficiaries are allowed a trial work period to test their ability to work while still receiving full benefits, no matter how much they earn, for up to nine months within a 60-month rolling period.

Frequently Asked Questions (FAQ)

To address common concerns and misconceptions, here's a FAQ section:

1. Can I have a savings account while receiving SSI?

Yes, you can have a savings account, but you must ensure that the total countable resources do not exceed the SSI resource limit.

2. Does receiving financial gifts impact my benefits?

Financial gifts are considered income for the month they are received, which can affect SSI benefits for that month. If the money remains in your account, it counts as a resource in subsequent months.

3. Are there resource exclusions I might have missed?

Yes, not all resources count against the SSI limit. For example, the value of a single vehicle used for transportation and certain funds set aside for burial may not be included. It's important to review SSA’s guidelines or talk to a legal specialist if you’re unsure.

4. How should I handle overpayments?

If you receive notice of an overpayment, you have options to request a waiver or appeal the decision, especially if you believe there was no wrongdoing on your part. It's crucial to contact SSA promptly to resolve the issue.

5. Are SSDI benefits ever reduced based on income from other sources?

While SSDI benefits aren't reduced based on savings or resources, certain other governmental benefits and income types can affect your check amount. It's recommended to communicate detailed changes in circumstances directly with SSA.

Conclusion

Understanding how money in the bank affects Social Security Disability benefits is vital for keeping your SSI or SSDI benefits intact. While the presence of funds in a bank account may impact SSI, they generally do not affect SSDI eligibility. However, it is crucial to be aware of the nuances of each program and to maintain communication with the SSA to ensure continued compliance with regulations. By keeping informed and proactive, you can ensure that your benefits continue without interruption.

For ongoing updates and further reading, you may explore resources offered directly by the Social Security Administration and trusted organizations specializing in disability rights and benefits management.