Social Security Disability and Money in the Bank

How to prove you are disabled
and win disability benefits

Here's a recent question. "Are You Allowed To Earn Interest From a CD of $15,000 While Being On Social Security Disability?"

Many people confuse Social Security and Supplemental Security Income disability when considering the impact of income and resources on disability eligibility.

Supplemental Security Income disability is a disability program that is based upon need; therefore, there are income and resource limits which affect SSI eligibility. Unlike Supplemental Security Income (SSI) disability, Social Security disability does not have any kind of income or resource limits because it is based upon insured status rather than need. Consequently, income (other than wages) and resources do not affect eligibility for social security disability benefits.

Social Security disability applicants or beneficiaries can have rental homes, investments, land, stocks, bonds, and CDs without any penalty. If an individual is receiving Social Security they can have as much money in the bank as they wish and there is no problem with interest earned on CDs.

SSI on the other hand is completely different. Eligibility to receive SSI benefits is affected by money in the bank, income, land, rental property, stocks, 401ks, and CDs. Why? Again, the reason SSI is affected by income and resources (of any kind) is that it is a need-based disability program meant for those who have little or no income or resources.

The non-medical criteria that establish eligibility for SSI are very similar to the eligibility guidelines for all social welfare programs. If an individual has income or resources above the SSI income and resource limits, they are not eligible for the need-based disability program.

When an individual files their disability application with Social Security, they are evaluated for both Social Security disability and SSI disability. If they meet the eligibility requirements of both programs, their disability claim will be sent to the state disability agency as a concurrent claim. If they do not meet the eligibility requirement of both programs, their disability claim can be sent as a Social Security disability or SSI only claim to the state disability agency.

Once they are medically approved for disability benefits, SSI beneficiaries have an "end line review" to address any changes in income or resources. An individual can be found medically disabled by Social Security and still not be eligible for SSI disability benefits because they do not meet income and resource limits.