If you’re receiving or planning to apply for Supplemental Security Income (SSI), it’s important to understand how the Social Security Administration (SSA) monitors your financial details. SSI is a program specifically for those with limited income and resources, so eligibility rules require regular reviews of financial accounts.
How often does the SSA check your bank accounts? What adjustments have been made for 2024? Here’s an updated guide to help clarify these points and highlight the recent changes.
DOES THE SSA REGULARLY REVIEW BANK ACCOUNTS?
There is no fixed frequency for SSA bank account reviews. Instead, they happen based on specific conditions such as:
- Eligibility Assessments: When applying for SSI, you must disclose all of your financial resources. During this step, the SSA reviews your bank accounts to determine whether they fall within the required limits.
- Suspected Fraud: If any activity raises concerns about potential fraud, the SSA may investigate, which could involve looking into your financial details without advance notice.
- SSI Reviews: Periodically, the SSA reassesses whether beneficiaries still qualify for the program. Depending on individual circumstances, this can occur as often as annually or as infrequently as every six years, and it often includes examining bank accounts.
WHY DOES THE SSA LOOK AT BANK ACCOUNTS?
SSI is meant to assist individuals with financial need. Resources contributing to eligibility include anything you own that can be turned into money—such as bank accounts, stocks, and owned property. SSA oversight helps confirm that resources remain within program limits and prevents overpayments or fraudulent use of funds.
The SSA has noticed overpayments often occur when beneficiaries hold resources over the allowed limit. By reviewing financial details, the SSA aims to ensure funds go to those who meet the assistance requirements.
HOW DOES THE SSA CONDUCT THESE REVIEWS?
The SSA uses an automated Access to Financial Institutions (AFI) system to verify provided bank details and uncover unreported accounts. This tool allows for efficient checks based on search criteria like location and account balances, helping to identify discrepancies or resources above the cap.
This method highlights the importance of reporting all accounts and staying within the allowable resource limits to avoid issues during reviews.
WHAT’S CHANGED IN 2024?
UPDATES TO HANDLING FOOD ASSISTANCE
Starting in September 2024, the SSA adjusted how in-kind support and maintenance (ISM) is assessed. Previously, receiving food or housing support from friends or family could result in SSI reductions, as such aid was treated as “income.”
Updates for 2024 include:
- No More Food Penalties: Support in the form of food, regardless of origin, will no longer count as income that impacts SSI benefits.
- Changes for Shared Households: Living with at least one individual who qualifies for public benefits, such as SNAP, will not negatively affect benefit amounts for SSI recipients.
These revisions aim to reduce recipients’ financial reporting burdens and remove penalties for those relying on informal support from family or friends.
REVISED RENT AGREEMENTS
If you’re paying rent equal to or exceeding the “Presumed Maximum Value” (currently $334.33), the SSA will treat this as a valid business arrangement, even renting from a relative. This prevents SSI benefits from being reduced based on assumptions of shared financial responsibility.
CAN THE SSA TAKE MONEY DIRECTLY FROM MY BANK ACCOUNT?
No, the SSA doesn’t have the authority to remove money from your account. Even in cases of SSI overpayments, the SSA will notify you and offer options to address the issue. Garnishments can only occur under court orders in specific situations, like Social Security fraud cases.
Also read: 7 Ways to Maximize Your Social Security Benefits
WHAT SHOULD I DO IF MY BANK BALANCE EXCEEDS THE ALLOWABLE LIMIT?
If your bank account temporarily exceeds SSI’s resource limit, your payments may be paused or reduced until your balance returns to compliance. However, consistent amounts over the threshold could cause eligibility issues.
WILL I KNOW IF MY BANK ACCOUNT IS BEING REVIEWED?
You’ll typically be informed if the review is part of a regular eligibility check, such as during the application process or periodic assessments. However, you may not receive notice of the review in fraud investigations.
DO THE NEWLY ADJUSTED ISM RULES APPLY TO ALL SSI RECIPIENTS?
Yes, these changes affect all SSI recipients, including older adults and people with disabilities. Removing food as a countable resource simplifies benefit calculations and reduces penalties for occasional or informal support from family and friends.
DOES THE SSA REVIEW ALL TYPES OF FINANCIAL ACCOUNTS?
The SSA examines resources that count toward the allowable limit, such as checking, savings, and money market accounts. Certain accounts, like ABLE accounts or burial funds, are excluded from consideration under specific conditions.
KEY POINTS TO REMEMBER
The SSA checks financial accounts to confirm SSI recipients stay within eligibility rules, using tools like the AFI system for efficient oversight. However, the updates introduced in 2024 simplify some reporting requirements and provide flexibility for individuals relying on informal help. With significant changes such as removing food-related penalties and clarifying rent agreements, the program is better suited for supporting those needing assistance.
Contact us if you still have questions or need help with your SSI application or benefit review. Our Victor Malac Law P.A. team has the knowledge to provide guidance and assistance. Contact us today to schedule a complimentary consultation to understand your rights and options better.
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About The Author
Judy Ponio is a writer and editor for the Victor Malca Law P.A. website and blog. She enjoys helping people in need with questions about social security disability and workers compensation law. She has a passion for helping those in need and the elderly with accurate legal information that can make a positive difference in their lives.