Supplemental Security Income (SSI) is a program designed to provide financial assistance to individuals who are aged, blind, or disabled and have limited income and resources. A common question among recipients or potential applicants is, “Can I own stocks while on SSI?” Individuals receiving SSI can own stocks. While you can receive SSI while owning stocks, there are limits on the value of resources a person can own while remaining eligible for SSI.
Resources, as defined by the SSI program, include things such as cash, bank accounts, land, life insurance, personal property, vehicles, and, indeed, stocks, mutual funds, and U.S. savings bonds. The Social Security Administration (SSA) considers resources as assets that can be converted to cash and used for food or shelter. This broad definition is part of the criteria used to determine a person's eligibility for SSI benefits​​.
“If an SSI recipient co-owns any asset, such as a bank account or property, the SSA may consider the recipient as owning the entire asset.”
The SSA limits the resources an individual or couple can own while remaining eligible for SSI. As of 2023, the resource limit is $2,000 for an individual and $3,000 for a couple.[1] It's crucial to understand that not all resources count towards these limits. Exclusions include the home you live in, one vehicle used for transportation, certain personal and household items, life insurance policies with a face value of $1,500 or less, burial spaces and funds under certain conditions, property essential for self-support, and under some circumstances, money saved under a Plan to Achieve Self-Support (PASS). Moreover, up to $100,000 in an ABLE account is not a resource​​​​.
Including stocks, mutual funds, and U.S. savings bonds as countable resources means that owning these can affect your SSI eligibility if the total value of your countable resources exceeds the aforementioned limits. It's also important to note that if you co-own assets, the SSA may consider you to own the entire value unless you can prove otherwise. However, the SSA does not count all assets toward this limit, allowing for some flexibility in what recipients can own without affecting their SSI benefits​​.
Owning investments that push your total countable resources above these limits can negatively affect your SSI eligibility. If the value of your countable resources exceeds the allowable limit, you might be ineligible to receive SSI benefits for that month. This emphasizes the need for careful financial planning and asset management to remain within the eligibility criteria.
SSI recipients must be vigilant in managing their assets to ensure they don't exceed the resource limits. This might involve regularly reviewing your investment portfolio and making necessary adjustments to keep the total value of countable resources within the SSA's prescribed limits. It's also important to be aware of the SSA's policy that allows for conditional benefits if you are trying to sell excess resources, which can help maintain eligibility​​.
If your resources exceed the limit, selling excess assets might be necessary to regain or maintain your SSI eligibility. The SSA permits recipients to sell excess resources and potentially receive SSI benefits during the process, provided they agree to repay the benefits if they cannot sell the resources at their assessed value. This provision is designed to support individuals in transitioning their assets without immediately losing access to needed benefits​​.
“Certain income and resources, educational grants and scholarships, and up to $100,000 in ABLE accounts, are exempt from SSI's resource limits.”
Specific exceptions to the SSI resource limits include assets held in PASS (Plan to Achieve Self-Support) accounts and ABLE (Achieving a Better Life Experience) accounts. PASS accounts allow disabled individuals to set aside money and other assets for specific work-related goals without affecting their SSI eligibility.[2] Similarly, ABLE accounts enable individuals with disabilities to save up to $100,000 without those funds counting as resources for SSI purposes​​.
Leveraging these exceptions can be a strategic way to plan for financial growth and independence without risking SSI benefits. By carefully managing assets within these excluded categories, SSI recipients can work towards financial goals, such as education, starting a business, or saving for future needs, without affecting their benefit eligibility.
Monitoring And Reporting Investments While Receiving SSI: It's crucial for SSI recipients to monitor their investments and report any changes in their financial situation to the SSA promptly. This includes reporting the acquisition or sale of stocks, changes in investment values, and opening or contributing to excepted accounts like PASS and ABLE.
Consulting With a Financial Advisor or Attorney Specializing in Disability Benefits: Given the complexities of SSI eligibility criteria and resource limits, consulting with a financial advisor or an attorney specializing in disability benefits can provide valuable guidance. These professionals can offer personalized advice on managing investments and utilizing exceptions to safeguard your benefits.
To answer, “Can I own stocks while on SSI?”; you can, but it requires careful navigation to ensure it doesn't compromise benefit eligibility. Understanding the resource limits, effectively managing investments, and utilizing available exceptions and exclusions are crucial steps in maintaining SSI benefits while pursuing financial opportunities. Regular monitoring of your resources, along with professional guidance, can help you make informed decisions, allowing for financial advancement without risking the vital support provided by SSI. As you consider the possibilities of investing while on SSI, remember that strategic planning and adherence to guidelines are your best tools for balancing financial growth with benefit security.
Our detailed guide explains more about the SSI Child Tax Credit. Learn more by visiting Benefits Aid and exploring our comprehensive resources.