Supplemental Security Income (SSI) risk with owning any stock

Currently, the process involves creating false hope that recipients have more control over their monthly income than they actually do. In reality, SSI is limited by state regulations and strict rules. While it’s often referred to as a “safety net,” this term doesn’t accurately capture the controlled nature of the program. SSI payments are subject to government guidelines, and recipients who deviate from these rules may face consequences. Supplemental Security Income (SSI) recipients must generally keep their countable while an individual beneficiary is subject resources below $1,913 to remain eligible for benefits per month limit from work or stock, a married couple can earn more as it's up to $2,827 per month. These resources include cash, bank accounts, stocks, and other assets. If an individual’s resources exceed this limit, their SSI benefits may be affected or even stopped. It’s crucial to manage resources carefully to comply with SSI rules and maintain eligibility. It’s essential to recognize the impact these rules can have on individuals’ ability to earn additional income. In 2024, an individual beneficiary cannot earn more than $1,913 per month unless married the limit of 2,827 per month is max from work or even from stock. This limitation could potentially force a worker to reduce their work hours or stop working altogether, or even forcing the individual to quit a job, because the schedule has more hours than lawfully allowed so it's a gamble, so it can even add a block for individuals from joining the workforce. The income limit is calculated based on both SSI payments and other types of income. Unfortunately, this rule can put SSI recipients at a disadvantage, hindering their ability to make significant gains and potentially preventing low-income individuals from getting ahead. While SSI serves as a safety net for those with limited resources, it’s essential to recognize the impact these rules can have on individuals’ ability to earn additional income.

For a one-person household, the maximum income limit to qualify for Supplemental Nutrition Assistance Program (SNAP) benefits is $1,383 per month, or $16,596 per year, also if you are a couple the benefits amount changes to $1,868 per month, or $22,416 per year.

Stock gifting does not count toward your income limit for Supplemental Security Income (SSI) purposes. When you give stock as a gift, the recipient benefits from any increases in the stock’s value. It’s a way to both give and potentially avoid paying capital gains taxes while also lowering the maximum stock holding cash amount you can have in your account. You can gift stock to family members, friends, or even donate it to charities. However, it’s essential to understand the tax implications and follow the rules related to gifting stock. As of 2024, the annual gift tax exemption is $18,000, which can impact the total amount you can gift, and this total amount can change each year. This approach is permissible for a person receiving Supplemental Security Income (SSI) who can potentially benefit from stock moves by involving someone who is not on SSI. By gifting or transferring stock to a non-SSI recipient, the SSI beneficiary can indirectly participate in stock market gains without directly impacting their SSI eligibility. However, this situation introduces a risk for low-income individuals, potentially allowing the stock transfer individual to only benefit from stock gains or take your cash once you transfer it into their name, while avoiding the intended limitations of Supplemental Security Income (SSI). This loophole can inadvertently create an unfair advantage and risk if something goes up significantly and gains nothing. So, it’s crucial to be cautious and consider whom you trust, especially when dealing with large amounts of cash.

If you’re receiving Supplemental Security Income (SSI) and considering an ABLE account, You can keep up to $100,000 in your ABLE account without impacting your SSI eligibility and help remove the very low cash limit and more information here onit: https://www.ablenrc.org/what-is-able/what-are-able-acounts/#Am%20I%20Eligible%20For%20An%20Able%20account?