If you suffer from a disability and require financial assistance, receiving Social Security Disability Insurance (SSDI) benefits can seem like a godsend. With this, you will not want to do anything that jeopardizes this opportunity. For one, you will need to learn how to save money in the appropriate manner. Continue reading to learn how you can save money while receiving SSDI benefits and how an experienced New Jersey SSDI benefits lawyer at The Law Offices of Sheryl Gandel Mazur can guide you in the right direction.
What are common misconceptions about saving money while receiving SSDI benefits?
Firstly, it is not necessarily true that you need to forfeit your best practices for saving money upon your reception of SSDI benefits. Something else that is not necessarily true is that you do not need to save any more money besides the monthly benefits that you receive. Rest assured, there are ways you can maintain savings without going over the Social Security Administration’s (SSA) income limit.
Why do I need to save money while receiving SSDI benefits?
Unfortunately, it may be the case that your SSDI benefits and medical insurance do not entirely cover your expenses. Therefore, maintaining savings is quite important for covering your outstanding balances. Examples of expenses that may require your savings to cover include, but are not limited to, the following:
- Prescription medications.
- Hospital care.
- At-home care.
- Occupational and physical therapy.
- Mobilization aids.
- Handicap-accessible housing.
- Housing located near doctors, schools, and/or accessible public transportation.
- Special educational programs.
- Expensive dietary restrictions or needs.
- Service animals.
- Lost earning potential.
How can I save money while receiving SSDI benefits?
Saving money while receiving SSDI benefits is made possible with the Achieving a Better Life Experience (ABLE) Act. Established in 2014, this act allows states to create tax-advantaged savings programs for eligible individuals with disabilities and designated beneficiaries. More specifically, if you unfortunately incurred a disability prior to the age of 26, you may set up an ABLE savings account. With this account, as much as $100,000 may be exempt from the SSA’s income limit. Importantly, a balance of over $100,000 will require calculating whether you meet the cap on assets.
On the other hand, you may be eligible to set up an individual development account or a special needs trust.
Or, you can file a Plan to Achieve Self-Support (PASS) with the SSA. With this written plan, you may outline the goals that can help you become financially independent or reduce or altogether eliminate your need for SSDI benefits. More specifically, you can set aside money for them items needed to reach the goal, such as education, childcare, assistive technology, etc., that will not be considered a countable resource by the SSA.
All in all, a skilled New Jersey SSD attorney can help determine how you can save money in a way that is in your best interest. Give us a call today.