How Much Money Can a Person on Disability Have in the Bank?

Disability benefits in the United States offer essential financial support to individuals unable to work due to medical conditions. The rules governing these benefits, particularly concerning financial assets, can be complex and vary across programs. This guide addresses the specific limits on how much money a person on disability can have in the bank.

Distinguishing Disability Benefits

The landscape of disability benefits includes two primary federal programs, each with distinct eligibility criteria. Social Security Disability Insurance (SSDI) is an earned benefit, available to individuals who have worked and paid Social Security taxes for a sufficient period. Eligibility for SSDI is based on an individual’s work history and medical disability, and it does not impose limits on the amount of money or assets a recipient can possess.

Supplemental Security Income (SSI), conversely, is a needs-based program designed for individuals who are disabled, blind, or aged 65 or older, and who have limited income and resources. This program aims to provide financial assistance for basic needs like food and shelter. The fundamental difference lies in SSI’s strict financial eligibility requirements, which include specific limits on countable assets.

Individuals receiving SSDI can have unlimited savings and investments without affecting their benefits. For SSI recipients, however, maintaining eligibility requires careful attention to resource limits, which directly impacts how much money they can have in bank accounts or other liquid assets.

SSI Asset Limits and Countable Resources

The Supplemental Security Income (SSI) program imposes clear limits on the financial resources an individual can hold to qualify for benefits. For a single individual, the countable resource limit is $2,000. For a married couple, or an individual with a deemed spouse, the combined countable resource limit is $3,000. These limits apply to the total value of assets that the Social Security Administration (SSA) considers “countable.”

Countable resources include money held in checking accounts, savings accounts, and cash on hand. Other liquid assets, such as stocks, bonds, and certificates of deposit, also fall under this category.

Beyond liquid funds, certain other possessions may be considered countable resources. Examples include a second vehicle, investment properties, or land not used as the primary residence. The SSA assesses these resources monthly. If countable resources exceed the limit, benefits may be suspended.

Exempt Resources and Financial Planning Tools for SSI

While strict asset limits govern SSI eligibility, several types of resources are specifically excluded from these calculations. These include:
The home in which an individual lives and the land it occupies.
One vehicle, if used for transportation by the individual or a household member.
Household goods and personal effects, such as furniture or jewelry, are generally not counted, provided they are in active use and not held primarily as investments.
Burial spaces for the individual and their immediate family.
Burial funds up to $1,500 each for the individual and their spouse.
Life insurance policies with a combined face value of $1,500 or less.

To allow individuals with disabilities to hold assets above the SSI limits without jeopardizing their benefits, specific financial planning tools exist.

ABLE Accounts

Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts that permit eligible individuals to save money for qualified disability expenses. Up to $100,000 in an ABLE account is not counted towards the SSI resource limit. If the balance exceeds $100,000, SSI benefits may be suspended, but Medicaid eligibility is generally not affected. To be eligible for an ABLE account, the disability must have occurred before the individual’s 26th birthday.

Special Needs Trusts (SNTs)

Special Needs Trusts (SNTs), also known as supplemental needs trusts, offer another pathway to hold assets for a person with a disability without impacting their SSI eligibility. Assets held within a properly drafted SNT are not counted as resources for SSI purposes, allowing the trust to supplement, but not replace, government benefits. These trusts can pay for a variety of supplemental needs, such as travel, recreation, and medical expenses not covered by other programs. For certain types of SNTs, the beneficiary must be under age 65 when the trust is established and funded.

Maintaining SSI Eligibility and Reporting Obligations

Receiving Supplemental Security Income (SSI) comes with ongoing responsibilities, particularly regarding financial resources. Recipients are obligated to promptly report any changes in their income, living arrangements, or resources to the Social Security Administration (SSA).

Failure to report changes in resources, such as an inheritance or a significant gift that pushes assets above the limit, can lead to serious consequences. If an individual’s countable resources exceed the limit, even by a small amount, their SSI benefits may be suspended or terminated. In such cases, the SSA may determine that an overpayment occurred, requiring the individual to repay benefits received during periods of ineligibility.

Recipients should regularly monitor their bank accounts and other assets to remain within the established limits. Proactive communication with the SSA is encouraged if any financial changes occur or are anticipated. If benefits are suspended due to excess resources, they can be reinstated once the countable resources fall back below the limit, provided all other eligibility criteria are met.