How SSDI Asset Limits Affect Social Security Disability

When applying for Social Security Disability Insurance benefits (SSDI), many people worry about how their assets may impact their eligibility. SSDI provides crucial financial support to disabled individuals who cannot work, but the program does have certain financial requirements.

Does SSDI Have Asset Limits?

One of the most common questions about SSDI is whether the program has asset limits. The good news is that SSDI does not have any asset limits. This means you can have savings, investments, or other valuable assets and qualify for SSDI benefits.

However, it’s essential to understand the difference between SSDI and Supplemental Security Income (SSI). While both programs provide financial support to disabled individuals, SSI is a needs-based program with strict asset limits. To qualify for SSI, you must have limited income and resources.

What Assets Are Allowed for SSDI?

Since SSDI does not have asset limits, you can have various types of assets without jeopardizing your eligibility. Some examples of assets that are allowed for SSDI include:

• Cash in bank accounts
• Investments, such as stocks or bonds
• Real estate property, including your primary residence
• Personal property, such as vehicles or household items
• Retirement accounts, such as 401(k)s or IRAs

It’s important to note that while these assets do not affect your SSDI eligibility, they may generate income that could impact your benefits. We will discuss this in more detail later in the post.

How Much Money Can I Have in the Bank While on SSDI?

As mentioned earlier, SSDI does not limit the amount of money you can have in your bank accounts. You can save money, check accounts, or acquire other financial assets without worrying about losing your SSDI benefits.

However, you must be mindful of asset limits if you also receive SSI benefits. As of 2023, the resource limit for SSI is $2,000 for an individual and $3,000 for a couple. If your assets exceed these limits, you may lose your SSI eligibility.

How Often Does SSDI Check Your Bank Accounts?

The SSA does not routinely check your bank accounts if you only receive SSDI benefits. Since SSDI does not have asset limits, the SSA has no reason to monitor your financial resources.

However, if you also receive SSI benefits, the SSA may periodically review your financial situation to ensure that you still meet the program’s eligibility requirements. This review process is called a redetermination and typically occurs every one to six years.

During a redetermination, the SSA will ask you to provide information about your income, resources, and living arrangements. They may request bank statements or other financial documentation to verify your assets.

It’s essential to keep accurate records and report any changes in your financial situation to the SSA promptly to avoid any disruptions in your benefits.

Can I Work While Receiving SSDI?

Many people wonder if they can work while receiving SSDI benefits. The answer is yes, but you must follow certain rules and limitations.

The SSA encourages SSDI beneficiaries to work if they are able. The program includes work incentives that allow you to test your ability to work without immediately losing your benefits. These incentives include:

• Trial Work Period: You can work for nine months (not necessarily consecutive) within a rolling 60-month period without losing your SSDI benefits, regardless of how much you earn.
• Extended Period of Eligibility: After your Trial Work Period ends, you have 36 months during which you can still receive SSDI benefits for any month in which your earnings fall below the Substantial Gainful Activity (SGA) level.
• Expedited Reinstatement: If your SSDI benefits stop because of your work activity, you can request to have your benefits reinstated without having to file a new application within five years of your benefits ending.

It’s important to report any work activity to the SSA and keep track of your earnings to ensure you do not exceed the allowed limits.

Get A Lawyer On Your Side

Managing the complex world of SSDI asset limits and work incentives can be challenging, but Fusco, Brandenstein & Rada, P.C. is here to help. Our experienced disability attorneys have been assisting New Yorkers for over 40 years. We understand the program’s ins and outs and can help you protect your eligibility while maximizing your benefits.

If you have questions about how your assets or work activity may affect your SSDI benefits, contact Fusco, Brandenstein & Rada, P.C. today at 516-496-0400 or reach out online to schedule your free consultation. Our knowledgeable attorneys will review your case, answer your questions, and provide the guidance you need to make informed decisions about your financial future.