Can You Have Two Bank Accounts While On Social Security?

Can You Have Two Bank Accounts on SSI
September 14, 2023

By Steve Fields
Principal Attorney

The Social Security Administration (SSA) offers financial assistance for disabled people. Some beneficiaries might feel the need to set aside funds in a different account for a rainy day. But can you have two bank accounts while on Social Security Disability Insurance (SSDI)?

Although you can have two bank accounts while receiving Social Security, the amount in them might affect your eligibility for certain disability benefits. However, there are a few workarounds to this problem, including using an Achieving a Better Life Experience (ABLE) account, participating in the Plan for Achieving Self-Support (PASS), or opening a trust account.

Can You Have Two Bank Accounts on Social Security?

There is no technical limit to how many bank accounts you can own while receiving disability benefits. However, the combined amount of all of your bank accounts may impact your eligibility for benefits, especially in the case of Supplemental Security Income (SSI). 

This is because the Social Security Disability Insurance program does not have any resource limits, but SSI does. 

To be eligible for SSI benefits, an individual cannot have more than $2,000 in assets ($3,000 for couples). The following assets can be considered when assessing your $2,000 limit:

  • Money
  • Stocks, dividends, or bonds
  • Personal vehicles
  • Personal property or land (excluding your residential home and business location)
  • Life insurance (only included if the face value exceeds $1,500)
  • Assets that can be turned into money

However, there are a few resources that the SSA does not consider. These include personal belongings, scholarships or grants for educational purposes, and money in Individual Developments Accounts.

How to Keep Two Bank Accounts While On Social Security

How Much Money Can You Have in the Bank on Social Security

There are some ways you can maintain the eligibility requirements while also keeping two accounts as an SSI beneficiary. 

Savings Account

You can open a standard savings account at any physical or virtual banking facility. If you are applying for SSI, you should be aware that there is a maximum amount of money that can be saved in any of these accounts and still be eligible for benefits. This is $2,000 for individuals and $3,000 for couples.

Plan for Achieving Self-Support

People who are eligible for SSI and wish to get back into the workforce may want to look into participating in the PASS program. People with disabilities are able to set aside money in their PASS accounts to purchase work-related supplies.

For instance, if a person wants to attend training in order to further themselves professionally, they can conduct cost research, and PASS can assist them in saving money so that they can achieve their goal.

You can register for PASS by going to the Social Security office in your area and working with a vocational rehabilitation (VR) counselor to develop a strategy. A representative of PASS is going to look through your strategy in order to give it the go-ahead. You have the option of appealing the decision in the event that it is rejected.

Trust Account

It’s not uncommon for parents to establish some kind of trust fund for their disabled child’s benefits, which can be used as a means of long-term financial planning.

Both pooling trusts and special needs trusts are regarded as exceptions and are therefore not taken into consideration when evaluating SSI eligibility. In the event that you satisfy the criteria for financial need, trusts won’t be taken into consideration.

Be aware that even if you have a trust that is not counted as a resource, your SSI benefits could still be reduced.

In the event that funds from the trust are used to pay another individual to provide food or shelter, the Social Security Administration may deduct up to $300.33 from your monthly SSI income. However, your SSI payment won’t be affected if you use it to pay for things like medical treatment or phone service.

ABLE Account 

SSDI Over $2,000 in Bank Account

An ABLE account is a type of savings account available to those who became disabled before the age of 26. Having an ABLE account will not affect your eligibility for other types of government assistance, such as Medicaid or Social Security income.

You are permitted to keep up to $100,000 in an ABLE account, and doing so will not have any bearing on whether or not you are qualified to receive SSI. However, there is a yearly limit on how much can be deposited.

For 2023, the maximum yearly contribution to an ABLE account is up to $17,000. People who work have the opportunity to save more money in an ABLE Account. The ABLE account fills a gap when it comes to financial support for people with disabilities who previously had few or no alternatives for setting aside money for their future. 

People with disabilities are able to put money away for their retirement and other financial goals with the help of an ABLE account, freeing them from the need to make ends meet only from the benefits they are receiving from the government.

You will need to submit an application through one of the ABLE state programs in order to obtain an ABLE Account. Every state besides Idaho, North Dakota, South Dakota, and Wisconsin has some sort of program. Some ABLE state programs also do not require applicants to be legal residents of the state.

Can I Split My Social Security Deposit Between Two Bank Accounts?

At this time, the Social Security Administration only permits direct deposits to be made into a single account held at a financial institution (such as a current account, savings account, or account associated with a prepaid card). Nevertheless, you have the option of preauthorizing your banking institution to move funds into any of your other bank accounts.

Conclusion

Having a second bank account is a great way to set some money aside should you ever need it. Thankfully, there is no technical limit to how many bank accounts you can have as a Social Security beneficiary. Still, you must keep in mind the threshold limits of programs like SSI.

Author

Steve Fields is the founder and managing attorney at Fields Law Firm. Since founding the firm in 2001 he quickly established a reputation with his Personal Injury clients for being a lawyer who truly cares.

Together with his experienced team of legal professionals, Steve ensures clients win their case, maximize their recovery while also looking out for their long-term interests, all backed with the firm’s Win-Win Guarantee®.

Fields Law currently handles cases for Personal Injury, Workers’ Compensation, Long Term Disability, Social Security Disability and Consumer Rights and has grown to be one of the largest injury and disability law firms in the nation.

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