Moving Roth IRA funds before SSI application - will this affect my disabled son's eligibility?

This is a really important question! The $2,000 resource limit for SSI is strict, and yes, having over that amount would disqualify him. However, you need to be careful about withdrawing the money right before applying. SSA looks back 36 months for transfers of resources made for less than fair market value specifically to qualify for SSI. If they determine that's what happened, they can impose a penalty period of ineligibility. If he uses the money for his own support and maintenance (paying for food, shelter, clothing, medical needs), that's generally considered an appropriate spend down. Just make sure to keep receipts and documentation of how the money was spent. Also, be aware that if he withdraws from a Roth IRA, the earnings portion might be taxable if it's not a qualified distribution, though the contributions can come out tax-free.

my brother has disability too and we went thru same thing!! use the money for things he NEEDS before you apply. we bought my brother new glasses, paid his dentist bill, got him a used laptop for his online therapy meetings, and paid his phone bill for a few months ahead. keep ALL receipts!!!! they didnt give us any problems when we showed everything was for him.

I work with SSI applicants regularly, and I need to point out something important - SSA distinguishes between resources (assets) and income. When your son withdraws money from the Roth IRA: 1. The money becomes a countable resource if still in his possession 2. The portion that represents earnings (not contributions) could count as unearned income in the month received The best approach is to spend down appropriately (necessary items for his support) before applying, but do it gradually and naturally, not all at once the day before applying. Medical expenses, catching up on bills, necessary clothing, and essential household items are all reasonable. Also, you might want to look into an ABLE account if your son's disability occurred before age 26. These special accounts allow people with disabilities to save above the $2,000 limit without affecting SSI eligibility.

To clarify about ABLE accounts: the law requires that the disability onset must have occurred before age 26. In this case, the OP mentioned a "childhood TBI" so an ABLE account could be an option. But you're right that not all disabled adults qualify - only those whose disability began before age 26.

just withdraw it all and spend it!!!! the SSA are not gonna come to ur house and check what u bought!!!! my cousin just took all his money out and got approved no problems

I went through a similar situation with my daughter last year. Trying to reach someone at Social Security to get clear guidance was INCREDIBLY frustrating. I spent weeks calling that 800 number only to be disconnected or told the wait time was 2+ hours. I finally found this service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in under 20 minutes! They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent I spoke with explained exactly how to handle the resource spend-down and gave me documentation I could include with my daughter's application explaining the situation. It was so much better than trying to figure it out on my own or risking doing something that would delay her benefits.

My nephew has SSI. They check EVERYTHING. They wanted bank statements going back 6 months when he applied. AND they check again every year at redetermination. Be honest about the IRA. Maybe askif he can spend it down before applying but KEEP ALL RECIEPTS!!! SSI is great but they make you jump through hoops.

One more thing to consider: if your son's father is receiving (or will soon receive) Social Security retirement or disability benefits, your son might qualify for Disabled Adult Child (DAC) benefits (sometimes called Childhood Disability Benefits) on his father's record. This would provide a higher benefit than SSI in many cases and doesn't have the same strict resource limits. To qualify, your son must: - Have become disabled before age 22 - Be unmarried - Have a parent who receives Social Security retirement or disability benefits OR a parent who died but worked enough to qualify for Social Security This is definitely worth looking into as an alternative or supplement to SSI.

I'm so CONFUSED about all these different benefits!!! Is SSI the same as SSDI??? And what's this Disabled Adult Child thing??? Why does the government make this so complicated!!! 😫 I've been trying to figure out what to apply for my sister and it's a NIGHTMARE!!!

just wanted to say ur a good mom for helping ur son!!! my mom helped me get on ssi when i was 19 (im 32 now) and it changed my life. dont feel bad about not doing it sooner, ur doing it now and thats what matters!!