Cash, bank accounts, stocks, bonds, certificates of deposit, extra vehicles, and land you do not live on count against SSI, Supplemental Security Income, retirement eligibility. SSI is needs-based, and certain trusts, life insurance, and IRAs and 401(k)s not paid periodically also count toward $2,000 individual and $3,000 couple limits.
The Social Security Administration measures countable resources each month. Cornell Legal Information Institute publishes the federal resource definition. An item counts when you own it and could turn it into cash for support.
Table of Contents
- How does the monthly limit work?
- Which accounts and property count?
- What home, vehicle, and personal items are excluded?
- How do burial, life insurance, and ABLE rules work?
- What protects back pay and work-plan funds?
How does the monthly limit work?
Per the Social Security Administration's Spotlight on Resources, monthly resources must stay at or below $2,000 individually or $3,000 for a couple. The test applies each month, not as an annual average.
Even a brief excess can cause ineligibility for that month unless an exclusion applies. Track balances through month-end, especially after deposits, transfers, or lump-sum payments.
Which accounts and property count?
The Social Security Administration and the Congressional Research Service list common countable items. The focus is cash and assets you could use for support. Ownership plus convertibility is the key test.
If you own an asset and could sell it for support, it generally counts unless an exclusion applies. Trusts and life insurance count only in certain forms, so check the specific exclusion before assuming either counts. Ask Social Security how your document is classified if the terms are unclear.
- cash and checking and savings accounts
- stocks, bonds, and certificates of deposit
- extra vehicles beyond the excluded automobile
- land you do not live on
- certain trusts and certain life insurance
What home, vehicle, and personal items are excluded?
Cornell Legal Information Institute publishes the home exclusion in sections 416.1210-416.1212. The home you live in and its adjoining land are excluded regardless of value for SSI purposes. In Understanding SSI 2023, the Social Security Administration excludes one automobile used for transportation.
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It must serve the recipient or a household member. Household goods and personal effects are also excluded. That means a primary home and one family car do not push you over the limit. A second car or a lot you do not live on generally does count.
How do burial, life insurance, and ABLE rules work?
In Understanding SSI 2023, the Social Security Administration excludes burial spaces for the recipient and immediate family. Burial funds up to $1,500 each for recipient and spouse are excluded. Life insurance with combined face value of $1,500 or less is excluded.
The Social Security Administration disregards the first $100,000 in an ABLE account, per its ABLE guidance. Only the balance above $100,000 counts as a resource and can suspend SSI if it pushes resources over the limit. For example, a $105,000 ABLE balance leaves $5,000 countable toward the limit. Keep other countable resources low enough that the combined total stays within the limit.
What protects back pay and work-plan funds?
The Social Security Administration describes work and back-pay protections in its Red Book on Work Incentives. Funds set aside under an approved Plan to Achieve Self-Support are excluded. Retroactive Social Security and SSI back payments are excluded for nine months.
Do not assume every set-aside qualifies without approval. Keep back-pay funds identifiable and check the balance before the nine-month period ends. If a payment will put you over the limit, ask Social Security promptly about exclusions before you move assets.
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