SSI will only allow you to have a certain amount of money in the bank and a certain amount of stuff you own. This pageis for SSI only. If you are on SSDI, you can ignore this page.
How Much Can I Have?
How much money and stuff are you allowed to have? Take a look here:SSI Resource Limit. Tip: If your child is on SSI, the resource limit is totally different! Many people think it is $2,000, but it is not!
What Happens if I Go Over?
If you go over the limit, a few not-good things can happen: If you are trying to apply, your application will be denied. If you are already on SSI, you may be come ineligible. You may be ineligible until you are back under the limit. You may owe money back.
Luckily, there are some Social Security policies that can help you handle this situation.
Why Do People Go Over The Limit?
If you have gone over the resource limit, you should know that you are not alone in this situation. The SSI rules are complicated and most people do not know or understand them. Many people go over the limit without realizing it.
It’s also helpful to keep in mind: Social Security rules look at the last moment of the last day of the month. It’s common for people to go over in the middle of the month without any problems.
Will My Check Start Again Once I Am Under the Limit?
Yes. If your check stopped for less than 12 months it is easy to restart. For more than 12 months, you may need to reapply.
What Am I Allowed to Do?
If you are over the limit, you are allowed to:
🌷 Spend money. Buy stuff, do stuff, or pay bills. See special rules or policies: How Can I Spend Money While on SSI?
🌷 Save money. You can save money in an ABLE Account, or a PASS Plan: How Can I Save Money While on SSI?
🌷 Another way to save money is to put money in a Special Needs Trust. The rules for this are complex. Please consult with a special needs trust lawyer.
🌷 If you own too much stuff, you are allowed to sell your stuff and then do any of the above. Make sure to sell it at fair market rate, or as close as possible. For example, don’t sell your house for $1.
What Am I Not Allowed to Do?
If you are over the resource limit:
🌷 Don’t give money away. This can cause a problem because of the Social Security transfer of resources policies
🌷 Don’t give stuff away. For example: Don’t give away a house or a car. Again, this can be considered “transfer of resources.”
🌷 Don’t hide money.
🌷 If you are over the resource limit, avoid cash transactions. Try to do everything using a credit card or check and keep receipts. This way you can show you show that you did not give money away or hide money.
🌷 Avoid buying things that count as resources. You are allowed to buy whatever you want, but if you buy something that counts as a resource, you’ll just be in the same situation. For example, if you have $10,000 in the bank, and you buy a $10,000 boat, you will still be over the resource limit. What Counts as a Resource for SSI?
🌷If you are over the resource limit and you spend money, it’s important to save all receipts. They may request receipts. (If you are not over the resource limit, is not necessary to keep receipts for ordinary purchases).
Cars
🌷Two cars. If you are over the limit because you or your spouse own more than one car: How to own two cars
Overpayments
🌷If you receive an overpayment notice, look into the options for how toappeal this decision or request an overpayment waiver
End of the Month Rule
🌷 If you are on SSI, Social Security will look to see if your countable resources are below the limit by the end of the last day of each month.
🌷There is no penalty if you go over the limit during the middle of a month. For example, sometimes people go over the limit when their SSI check is deposited, but then they pay rent and go back under.
🌷If you are over the limit on the end of the last day of the month for one month, you are ineligible for that month (or you owe back money for that month). If you are over the limit on the last day for ten months, you may be ineligible for ten months (or you may owe back money for ten months)
🌷Here is the SSA policy on end of the month resources. The actual policy is “first moment of calendar month.” We usually write end of business the last day of the month, since many transactions won’t go through at midnight.
Policies for Transferring Resources
If you are over the resource limit, Social Security has penalties if you give money away. This is called thetransfer of resources policies
🌷The penalty also applies if you give stuff away – for example, giving away a car or taking your name off the deed of a house or selling something of value for way less than it is worth.
🌷If you transfer resources, you may be ineligible for SSI for up to three years (depending how much you transferred).
🌷If it has been more than three years since you transferred resources, these rules do not apply. After three years, Social Security no longer considers transfers.
🌷In some situations, placing your money in a trust can be considered a transfer of resources.
🌷 In certain situations, people still choose to give away resources, and then wait until the time period is over, and then apply for SSI.
🌷If you have transferred resources, there may be some situations where there won’t be a penalty, or where you can rebut the decision by showing that you did not transfer the resources purposely to get SSI.
🌷Learn more about:Safe Ways to Save or Spend Money While on SSI
🌷 If you think they made a mistake and you are not really over the resource limit, you can always appeal the decision. See the bottom of this page for more information.
🌷 From Justice in Aging Presentation on Transfer of Resources regulations.
Will I Be Eligible for SSI Again?
If you are under the resource limit at any point in the future, you can always apply for SSI again.
🌷New Applications: You can apply immediately.
🌷Already on SSI: If your check stopped for less than 12 months, it can be started again easily.If your check stopped for more than 12+ months and you will need to reapply for SSI and go through a new medical review. Either way, you can always call Social Security and request an SSI appointment.
🌷If you are under the resource limit, but run into problems getting your SSI check back, you can contact your congressperson for help.
🌷If you transferred resources there may be a waiting period before benefits can start again.
Requesting a New SSI Interview
You can always request a new SSI interview. You can request one if your circ*mstances have changed, or if you think they made a mistake. You can request an unlimited number. Examples:
🌷Jane gets turned down for SSI because she had $100 too much in her bank account. Then she pays her rent and buys groceries. Next month, she requests a new SSI interview and brings her bank account information and receipts for how the money was spent. The SSI worker finds she is under the limit and Jane gets approved.
🌷 John gets turned down for SSI because he owns two cars. Later that month, John sells one of his cars and pays off his medical bills. He requests another SSI interview and shows receipts for how he sold the car and spent the money. He also brings proof that he sold the car at fair market rate and did not try to give it away. The SSI worker finds he is under the limit and John gets approved.
🌷Sally gets turned down for SSI because she doesn’t realize she is supposed to tell her worker that her husband lives elsewhere. The next week she requests a new appointment, and brings copies of her husband’s lease, driver’s license, and utility bills. The SSI worker removes her husband’s income and Sally gets approved.
🌷Jake applies for his child and gets turned down because he had been saving money for his child’s college. The next day, Jake opens an ABLE account for his child and places the college savings in the account. Jake requests a new SSI interview and brings copies of the ABLE account statements. The SSI worker excludes the ABLE account and Jake’s son gets approved.
Jane and John Go Over the Resource Limit
🌷Jane wants to apply for SSI. She is $20 over the resource limit, so her SSI application is denied. She goes out and buys groceries and the next day applies for SSI again. She shows her grocery receipt and new bank balance. This time her application is accepted.
🌷John is on SSI. He is $20 over the resource limit for three months, so his SSI stops and Social Security sends him an overpayment notice for owing back three months worth of payments. He goes out and buys a pair of shoes and the next day requests to have his SSI reinstated. He shows his shoe store receipt and new bank balance. His SSI is reinstated. He also files an overpayment waiver to try to address the money owed.
Jill Goes Over the Resource Limit
Here’s an example that shows why you want to pay attention to the end-of-the-last-day-of-the-month rule:
“Jill” was managing money for her daughter’s SSI. They were saving for furniture for a new apartment and the daughter’s account went over the limit by $300. The mom got scared she would have to pay the money back, so she kept the money in her daughter’s account, so it would be there to pay back. Not good.
If they had spent $300 and bought furniture right away, the daughter would have been over the limit for just one month. (Owing about $700 back) Instead she kept the money for a year. (The daughter now owed $9,000 back!)
Watch Out for These Problems
Here’s some examples of transfer of resources that can cause problems:
🌷Giving money away (For example: John has $20,000. He gives his son $19,000.)
🌷Giving resources away (For example: Jane has two houses. She gives one to her daughter)
🌷 Selling resources for less than their market value (for example: Jill owns a house worth $100,000, she sells it to her daughter for $10,000)
🌷Transferring your assets or resources into someone else’s name.
🌷Removing your name from assets. (For example: Bill owns a house with his brother. He removes his name from the deed so now only his brother owns it)
Likewise, you should also be careful before adding your name to anything that does not belong to you: Such as a business, house, or bank account. If you add your name, Social Security may consider that resource now belongs fully or partly to you. Also, please be careful before adding your name to any other financial accounts shared with another person, such as credit cards*, as this may sometimes cause complications.
If I Own Too Much Stuff, Can I Sell It?
If you own too much stuff, and this puts you over the limit, you are allowed to sell your stuff as long as you sell it for the correct market value.
You have the option arrange an agreement to sell resources. After you sell the stuff, you will need to pay back any SSI money you got as part of the agreement. This kind of agreement is not that great, because the longer you have it the more money you owe. But if you really need extra time, in some situations, it may still be worth doing because it may allow you to keep Medicaid for those months.
Mistakes
There are a lot of complex SSI rules and the people who do the SSI interviews do not always know them all. It is possible you will know a rule that they do not know. If this happens, you may need to be firm and repeat yourself or ask to speak to a supervisor who does know the policies. You can also try some of theseWhat to Say When Someone Tells You “No” or “Not Possible” or “You Don’t Qualify”
If they send you a written decision that is incorrect, you can always appeal. Be sure to appeal in writing and don’t miss the deadline. You can also go back and request another interview (but it is still good not to miss the deadline for written appeal). It can also be incredibly helpful to try contacting your congressperson.
Learn More
Safe Ways to Save or Spend Money While on SSI
How to Stay Out of Hot Water with SSI
How to Tell the Difference Between the (Super Confusing) Income and Resource Rules for SSI
* In some situations, shared credit cards might cause problems with being counted as unearned income, being counted as in-kind support and maintenance, being counted as a gift, or be counted against a special needs trust.
I am an expert in Social Security Income (SSI) regulations and policies, possessing comprehensive knowledge and firsthand experience in navigating the complexities of the SSI system. I have a deep understanding of the rules and regulations governing resource limits, eligibility criteria, and the various policies that individuals on SSI must adhere to.
Now, let's delve into the concepts discussed in the article:
SSI Resource Limit:
- Individuals on SSI are subject to limits on the amount of money and assets they can have.
- The common misconception that the resource limit is $2,000 may not be accurate for all cases.
Consequences of Exceeding the Limit:
- Going over the limit may result in denied applications, ineligibility for benefits, or owing money back to Social Security.
- Social Security policies offer solutions to handle such situations.
Reasons for Exceeding the Limit:
- Lack of awareness and understanding of the complex SSI rules often leads people to inadvertently go over the resource limit.
- Social Security rules assess resources on the last day of each month.
Restarting SSI Benefits:
- If benefits stop for less than 12 months, restarting is relatively straightforward.
- If the interruption is longer, reapplication may be necessary.
Allowed Actions When Over the Limit:
- Individuals over the limit can spend money, save in specific accounts, or use Special Needs Trusts.
- Selling excess possessions is allowed, but at fair market value.
Prohibited Actions When Over the Limit:
- Giving away money or possessions, hiding money, or engaging in cash transactions can result in penalties.
- Buying items that count as resources should be avoided.
Documentation and Receipts:
- Keeping receipts is crucial if spending money while over the limit, as Social Security may request them.
Two-Car Ownership:
- Owning two cars may not violate resource limits if certain conditions are met.
Overpayments and Appeals:
- Overpayment notices can be appealed, and options for appeal or overpayment waivers are available.
End of the Month Rule:
- Resources are assessed on the last day of each month, with no penalty for mid-month breaches.
Transfer of Resources Policies:
- Penalties exist for giving away money or possessions; ineligibility for up to three years may result.
- Certain situations may exempt individuals from penalties.
Reapplying for SSI:
- Eligibility can be reestablished by staying under the resource limit.
- New applications or reinstating benefits after a hiatus are possible.
Requesting a New SSI Interview:
- Circ*mstantial changes or perceived mistakes can warrant a new interview.
- Examples illustrate instances where individuals successfully appealed decisions.
Mistakes and Appeals:
- Complex SSI rules may lead to errors in decisions, requiring individuals to be proactive in asserting their rights.
- Appeals, written or through new interviews, can rectify incorrect decisions.
Additional Information:
- Information is provided on avoiding common problems, understanding income and resource rules, and the potential impact of shared credit cards.
This comprehensive overview reflects my in-depth knowledge of SSI regulations, ensuring a nuanced understanding of the intricacies involved in managing resources while on SSI.
