While there are many people who are more than happy with the Social Security Disability Insurance (SSDI) program financially supporting them while they are unable to work, almost everyone can agree that it is a complex program. The rules and guidelines are often difficult to understand. For example, does SSDI look at your bank account?
Yes, the Social Security Administration (SSA) does review your bank account. This is done to track your finances and make sure you are eligible for the program. Even though SSDI does not have any financial requirements, it does have a specific income limit.
Keep reading below as we discuss more about bank accounts and SSDI vs. SSI.
SSI vs. SSDI
It’s helpful to start with a discussion of the programs’ shared features before diving into their individual differences.
- The Social Security Administration (SSA) is the federal agency in charge of enforcing the laws and regulations governing each of these programs.
- Their ultimate goal is the second thing they share. Each of the programs was developed to provide assistance to those individuals who fulfill the requirements for eligibility, which are based on the fact that they are disabled per the medical standards that have been established for each program.
The two programs share only two commonalities; otherwise, they couldn’t be farther apart. Individuals who are covered under Social Security Disability Insurance are eligible to receive benefits from the program.
Those who have paid into the Social Security system through their employment are considered insured. In order to get SSDI, either the disabled individual themselves or their spouse or parent must have a sufficient work history.
Supplemental Security Income (SSI) is a program that provides monthly benefits to individuals over the age of 65, as well as those who have become blind or disabled, no matter their age.
Young people who are blind or disabled can apply for SSI payments regardless of their work history. Proof of financial necessity is required for SSI benefit payments, which place strict limits on the recipient’s earnings and resources.
Eligibility for Disability Benefits
For the Social Security Administration to rule that an adult is disabled and eligible for SSI or SSDI, they need to see proof that they have a mental or physical condition that is going to keep them from working for a minimum of 12 months or lead to their death.
The term “substantial gainful activity” refers to any type of employment that requires significant mental or physical exertion, such as walking, standing, climbing stairs, lifting, or retaining information.
When you earn money as a result of your labor, whether in the form of compensation from an employer or revenue earned through self-employment, the work can be considered gainful. In most cases, activities such as maintaining a household, participating in social events, or looking after oneself are not considered to be gainful work activities.
The Social Security Administration uses the total amount of monthly earnings as one criterion for determining whether a beneficiary is capable of significant gainful work. A month’s worth of earnings over $1,470 in 2023 demonstrates that you have engaged in substantial gainful activity and are no longer disabled.
While determining disability for both SSI and SSDI uses the same criteria, the financial requirements for each program are different.
Qualification for Social Security Disability Insurance is based on past employment. To qualify for SSDI benefits, you need to have worked for a sufficient number of years and paid Social Security taxes on your wages or business profits.
The age you were when you became disabled is one of the factors that determines how long of a work history is required to qualify for Social Security Disability Insurance (SSDI).
People whose disabilities developed at a younger age typically need a shorter work history with earnings subject to Social Security taxes than those whose disabilities developed at a later age.
The Social Security Administration does not take into account your financial resources, such as your savings and investments or your property value when deciding whether or not to award you SSDI benefits.
During the evaluation of your application for Social Security Disability Insurance or during a periodic eligibility review, which the Social Security Administration performs after a certain amount of time has passed since you began receiving benefits, Social Security may investigate the origin of the money in your bank account.
The Social Security Administration may request documentation showing the funds did not come from wages or business profits.
You should hold on to documents relating to the money that is placed into a bank account and present them to your SSDI attorney in the event that Social Security contests the origin of the funds. This will help you avoid problems with substantial gainful activity based on earned income.
In determining SSI eligibility, financial necessity is taken into consideration. You must meet not only the medical conditions, which include having a qualifying impairment or being blind, but also the financial criteria, which include having a limited income and a limited amount of valuable financial resources available to you.
Money in the bank or other liquid assets is restricted to $2,000 for an individual and $3,000 for a couple.
Can I Own a Bank Account While on SSDI?
Assuming you complete all other requirements, having a bank account won’t exclude you from receiving Social Security Disability benefits. The Social Security Administration places no limits on your ability to own funds or assets.
Remember that the SSDI program does not place any restrictions on the total amount of money you can have in a bank account, but it does limit the amount of money you can make by working or being self-employed.
Suppose you are receiving SSDI or believe you may be eligible for it. In that case, it is in your best interest to speak with an experienced disability attorney to learn about the annual changes to the maximum amount of income you may receive through work or self-employment.
If your income is too high, the Social Security Administration may determine that you are capable of working a full-time job and hence deny you benefits.
Can SSDI Look At Your Bank Account?
The only way for SSA to be able to check your bank account is if you explicitly give them permission to do so. This is because there is no limit on assets or resources that might make an individual ineligible for the program.
On the other hand, the Social Security Administration can easily check the bank account of a person receiving SSI. This is because there are strict limits on the amount of funds or resources they can own, and permission is generally assumed.
The only requirement for SSDI is that your earned income fall below a certain limit, and this information can be obtained through the Internal Revenue Service (IRS).
SSDI Income Limits
There is a limit placed on the amount of money that you can make through your employment. In 2023, if you want to collect SSDI, your monthly income can’t be more than $1,470. The maximum income for a blind person is $2,460.
According to the Social Security Administration, being blind is a very specific impairment that entails very specific costs.
The Social Security Administration won’t consider you disabled if you have the potential to earn additional income. If you are disabled and start working while you are receiving benefits, you may be eligible to keep receiving them as long as your earnings are below the threshold.
The SSDI limit does not take into account unearned income (e.g., a spouse’s income) or property. In the event that you are simultaneously submitting an application for Supplemental Security Income, those sources of income will be taken into consideration. If your monthly income is higher than $914, you do not qualify for SSI.
SSDI limits do not apply to all forms of income. The following sources of income are not considered by the SSA:
- Spouse’s income
- Off-the-books payments
- Interests
- Investments
- Other resources
When You Can Earn More Than the Income Limit
There are several exceptions to the rules against significant gainful activity, especially for disabled claimants who are seeking re-entry into the workforce.
People receiving SSDI from the government can try out the workforce for up to nine months. These months do not have to be consecutive and can be stretched out over a period of five years; during this time, you are eligible for your entire benefit despite any income you may have.
If you find and keep consistent employment that pays more than the Substantial Gainful Activity (SGA) threshold after your Trial Work Period (TWP) ends, Social Security will reduce your monthly benefits but provide you with an “extended period of eligibility.”
If your income drops below the SGA threshold at any point during the next 36 months, you will automatically get your SSDI payment for that month.
Savings Account on SSDI
It is possible to open a savings account even when receiving disability benefits from Social Security or Supplemental Security Income. Nevertheless, the sort of disability benefit you receive may place restrictions on the maximum amount you are allowed to have in it at any given time.
People who are unable to work due to a medical problem that has lasted a minimum of twelve months or is terminal are eligible for SSDI based on their employment history and the severity of their condition.
While receiving SSDI payments, there are financial constraints on how much money you can earn from work but none on what you can own. You’re free to put as much cash into your savings account as you see fit.
Savings Account Options for SSI
Following are some savings account options for SSI beneficiaries.
Savings account
You can open a standard savings account at any physical or virtual financial institution. However, if you want to apply for SSI, you should be aware that there is a limit to the amount of money you can save.
PASS program
If you receive SSI and are interested in getting back into the workforce, look into the Plan to Achieve Self-Support or PASS program. People who have disabilities are allowed to save money for work-related supplies through the PASS program.
An individual can use PASS to find ways to save money on things like training courses that they intend to take to advance their careers.
You can meet with a vocational rehabilitation (VR) counselor at your neighborhood Social Security office to begin setting up PASS. A PASS professional will evaluate your proposal and give it the green light if it meets its standards. You have the right to file a formal appeal of the denial.
Trust
Parents of disabled children should consider establishing a unique form of trust to help their kids invest in the future.
When evaluating SSI eligibility, special needs trusts and pooled trusts are not considered assets. If you can prove severe financial hardship, your trust won’t matter either.
Even if your trust is not counted as a resource, it could nevertheless affect your Supplemental Security Income payments.
Your monthly SSI payment may be reduced by up to $300.33 if funds from the trust are used to compensate another person for providing necessities like food and housing. You will not have your SSI payments lowered if you use the money for something other than living expenses, like medical care.
ABLE account
When a person has a disability before the age of 26, they are eligible for an Achieving a Better Life Experience or “ABLE” account. Having money in an ABLE account won’t get in the way of receiving other forms of government aid.
An ABLE account can hold up to $100,000 without affecting your SSI benefits in any way. However, there is a limit to how much you can put away per year.
Conclusion
So, while the SSA does not have permission to look at your bank account to determine eligibility for SSDI, it is nevertheless important that you hold on to any bank documents that may be important during a review or evaluation.
