Social Security DAC benefits - is there a savings account limit for my disabled adult child?
My daughter (27) receives Disabled Adult Child (DAC) benefits based on my work record since I retired last year. She has a developmental disability but works part-time at a supervised workshop making about $850/month. I know there's an income limit that could affect her benefits, but she's starting to save some money in her bank account. Is there a limit to how much she can have in savings before it affects her DAC benefits? I've heard conflicting things - some people say $2,000 like SSI, others say there's no asset limit for DAC. Can anyone clarify? I don't want her to lose benefits but also want to help her build some financial security.
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Shelby Bauman
You're confusing DAC benefits with SSI (Supplemental Security Income). They're completely different programs with different rules! DAC (Disabled Adult Child) benefits are part of Social Security Disability Insurance (SSDI) and are based on YOUR work record. There is NO asset limit for these benefits - your daughter can save as much as she wants in her bank account without affecting her DAC benefits. The $2,000 asset limit you're thinking of ONLY applies to SSI, which is needs-based. Since your daughter is receiving DAC benefits on your record, she can have unlimited savings. However, do watch her INCOME (not savings). If she earns over the Substantial Gainful Activity amount ($1,470/month in 2025 for non-blind individuals), that could affect her disability status. At $850/month, she's well under that limit.
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Josef Tearle
•Thank you so much for clearing that up! I was definitely mixing up the programs. That's a huge relief to know she can save without limits. I'll still keep an eye on her monthly income to make sure it stays below that $1,470 threshold. Does Social Security automatically check her earnings or should I be reporting her income somewhere?
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Quinn Herbert
My brother has DAC benefits too and we put some money in his account last year and nothing happened to his benefits. BUT the social security lady told us if he ever gets SSI then there IS a limit so be careful!!!!! They don't always tell you everything!!!!
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Shelby Bauman
•You're right to point this out. If someone receives BOTH DAC and SSI (which can happen in certain situations), then the SSI asset limits would apply. But from what the original poster described, it sounds like their daughter is only receiving DAC benefits, not SSI.
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Salim Nasir
I have a question related to this - my son gets DAC benefits and we were thinking of setting up a special needs trust for him. Would that be necessary if there's no asset limit for DAC?
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Hazel Garcia
•Even though DAC benefits don't have asset limits, a special needs trust is still worth considering for long-term planning. It protects assets if your child might need Medicaid services in the future (which DOES have asset limits). It also provides management structure if your child can't manage larger sums of money independently. I'd recommend consulting with a special needs attorney to set one up properly.
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Laila Fury
it depends if shes on medicaid too, thats what got my daughter in trouble. the social security didnt care about her savings but medicaid did and she lost her healthcare for 6 months until we spent down the money
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Josef Tearle
•That's a really good point I hadn't considered. My daughter is on Medicaid as well. I'll need to look into whether the state has asset limits for that program separately from her DAC benefits. Thanks for pointing this out!
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Geoff Richards
You might want to look into an ABLE account for your daughter. It's specifically designed for people with disabilities that developed before age 26. In 2025, you can contribute up to $18,000 per year, and the first $100,000 in the account doesn't count toward asset limits for programs like Medicaid or SSI (if she ever needs SSI). It's a great way for people with disabilities to save without jeopardizing benefits. I set one up for my son, and it's been a lifesaver for building his emergency fund and saving for things he needs without worrying about benefit eligibility.
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Josef Tearle
•This sounds perfect! My daughter's disability was diagnosed when she was 4, so she would qualify. I'll research ABLE accounts right away. Thank you for sharing this information!
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Simon White
My son has been on DAC for 10 years now and we've never had any issues with his savings account. SSA only cares about his income from work, not what's in his bank.
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Salim Nasir
Has anyone had any luck actually getting through to SSA to ask these kinds of questions? I've been trying for weeks to confirm something about my daughter's benefits and I just get disconnected or wait for hours.
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Hazel Garcia
•I had the same issue trying to get answers about my son's DAC benefits. After multiple failed attempts and hours on hold, I tried Claimyr (claimyr.com) and finally got through to a real person at SSA in about 20 minutes. They basically call SSA for you and connect you when an agent picks up. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU It saved me a ton of frustration, especially since I needed to sort out some complicated questions about his benefits that couldn't be handled online.
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Salim Nasir
•Thanks for the tip! I'm going to check this out. At this point I'd try anything to get through to someone who can actually answer my questions.
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Laila Fury
tell ur daughter congrats on saving!! my kid always spends everything the minute she gets it lol
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Josef Tearle
•Haha, will do! She's always been careful with money, even as a little girl. She's saving up for a tablet right now, and she's so proud every time she adds to her account.
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Quinn Herbert
WAIT!!!! Does your daughter file taxes?? My nephew lost his benefits because he didnt report his income properly on his taxes even though it was under the limit!! Make sure all paperwork is done right!!!!!
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Shelby Bauman
•This is incorrect. DAC benefits aren't affected by whether someone files taxes or not. Your nephew likely had an issue with something else, possibly not reporting work activity directly to SSA (which is separate from tax filing) or perhaps he was on SSI instead of DAC. That said, everyone with income should file taxes when required, but this doesn't directly impact DAC eligibility as long as the work activity remains below SGA levels.
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Nalani Liu
•@Quinn Herbert I think there might be some confusion about your nephew s'situation. As @Shelby Bauman mentioned, DAC benefits typically aren t lost'due to tax filing issues alone. However, it IS important to report work activity directly to Social Security through their work reporting system, which is completely separate from filing taxes. If your nephew was working and didn t report'those earnings to SSA not the (IRS , that)could have caused problems. DAC recipients are supposed to report any work activity to Social Security, even if it s below'the SGA limit. Maybe that s what'happened in his case?
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