Navigating Social Security Disability Benefits: The Impact of Savings Accounts

Understanding the Financial Considerations of SSDI and SSI

Navigating the complexities of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) requires a nuanced understanding of the financial aspects involved. One crucial factor that can significantly impact eligibility for these benefits is the amount of money in one’s bank account. However, the rules and regulations surrounding savings accounts differ between SSDI and SSI. In this article, we will explore the implications of savings accounts on these disability benefits and highlight alternative savings avenues for individuals with disabilities.

1: SSDI and Savings Accounts

When it comes to SSDI, the rules regarding savings accounts are more lenient. According to the Social Security Administration, there are no specific limits on the amount of money an SSDI recipient can have in their bank account. This means that individuals can have as much money in the bank as they wish without jeopardizing their eligibility for SSDI benefits. However, it’s important to note that during the application process or periodic reviews, the applicant’s bank account may still be subject to scrutiny. Additionally, if an individual is working while receiving SSDI, their bank account may be examined to determine if their monthly income exceeds the substantial gainful activity limit.

2: SSI and Financial Resource Limits

In contrast to SSDI, SSI imposes stricter regulations on financial resources. To qualify for SSI, individuals must meet specific criteria, including having a disability or reaching the age of 65, and adhere to income and resource limits. For single individuals, the total value of resources cannot exceed $2,000, while the limit is set at $3,000 for married couples residing together. This includes not only money in the bank but also other assets such as property and investments.

3: The ABLE Account Option

Fortunately, an alternative savings avenue exists for individuals with disabilities who acquired their disability before the age of 26. The Achieving a Better Life Experience (ABLE) account allows individuals to save money without impacting their eligibility for government assistance, including SSI. With an ABLE account, individuals can keep up to $100,000 without it affecting their SSI benefits. However, it’s important to note that annual deposits to an ABLE account are capped at $16,000 as of 2022.

4: The Impact of Trusts on SSI Benefits

For individuals concerned about potential reductions in SSI benefits due to a trust, it’s crucial to understand the rules. Utilizing trust funds for food or shelter expenses can result in a monthly deduction of up to $300.33 from SSI benefits. Therefore, it’s important to carefully consider how trust funds are used and consult with a financial advisor or vocational rehabilitation counselor to ensure compliance with SSI regulations.


Navigating the financial considerations of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) requires careful planning and an understanding of the rules and regulations surrounding savings accounts. While SSDI allows individuals to have as much money in the bank as they wish, SSI imposes stricter resource limits. However, alternative savings options such as ABLE accounts and specialized trusts can provide individuals with disabilities with opportunities to save without jeopardizing their eligibility for benefits. Consulting with professionals in the field can help individuals make informed decisions and navigate the complexities of the Social Security disability system.






Leave a Reply

Your email address will not be published. Required fields are marked *