Social Security DAC benefits - is there a savings account limit for my disabled adult child?

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?

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.

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.

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!

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!

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.

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.

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.

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.

@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?

Thank you for sharing your experience! It's really reassuring to hear from another parent who's been through this. The documentation tip is excellent - I'll start keeping better records of everything just to be safe. It's such a relief to know that $15,000+ in savings hasn't caused any issues for your son. I was getting so stressed about potentially hurting my daughter's benefits when all I want is to help her build some financial security. The ABLE account is definitely on my to-do list now after reading all these comments. It sounds like it would be perfect for her situation, especially with the additional protections it offers. Thanks for the warning about bad advice too - I can see how easy it would be to panic and make unnecessary financial decisions based on misinformation.

Welcome to the community! Your advice about calling the local SSA office is really helpful - I hadn't thought of trying that approach instead of the main number. It makes sense that local staff might be more familiar with DAC specifics since they probably handle these cases more regularly. The paper trail tip is excellent too. I'm realizing from all these responses that good documentation is key, even when there aren't asset limits to worry about. It sounds like having everything organized will make any future benefit applications much smoother. You're right about the workshop income being in a good spot. The workshop handles all the wage reporting to SSA automatically, which has been one less thing for me to worry about. They've been really good about staying on top of the administrative side of things. Thanks for the reassurance and practical advice! It's so helpful to hear from people who've actually navigated this process.

Thank you for sharing your son's experience! It's so reassuring to hear from multiple parents who've been through this successfully. The $8,000 your son has saved without any issues is really encouraging - it helps confirm what others have said about there being no asset limits for DAC benefits. You're absolutely right about the misinformation problem. I've gotten so many conflicting pieces of advice from well-meaning people who were mixing up different programs. This community discussion has been invaluable for sorting through what actually applies to DAC versus SSI. I'm definitely going to look into the ABLE account after all these recommendations. It sounds like it would be perfect for my daughter's situation, especially for long-term planning and those tax benefits you mentioned. Thank you for the encouragement about her saving! She's so proud of herself for being able to set money aside each month, and I want to make sure I'm supporting her financial independence without accidentally jeopardizing her benefits. It's wonderful to know we're on the right track.

Welcome to the community! It's great that you're getting ahead of the DAC application process before your retirement. From my experience helping others navigate this, the initial DAC application typically takes 3-6 months to process, but it can vary depending on how complete your documentation is and your local office's workload. Since you're planning to retire next year, I'd recommend starting the application process about 4-6 months before your retirement date if possible. This gives you a buffer in case they need additional documentation or if there are any delays. Make sure you have all of your daughter's medical records organized and any documentation of her disability onset before age 22. The fact that her autism was diagnosed at age 3 should make the "disabled before 22" requirement straightforward to prove. Her current work at $600/month is well under the SGA limit, so that shouldn't be an issue either. Definitely look into that ABLE account once her DAC benefits are approved - it'll be a great tool for her long-term financial planning. Good luck with the application process!

Welcome! Great to see another parent being proactive about this process. I went through the DAC application for my son about 2 years ago, and it took about 4 months from start to finish. A few tips from my experience: Make sure you have comprehensive medical records documenting your daughter's autism diagnosis and any ongoing treatment. They'll want to see evidence that her condition began before age 22 (which sounds like you have covered) and that it significantly limits her ability to work. Since she's already working part-time, that actually helps show she's trying to be productive while still being limited by her disability. Keep all her pay stubs and work documentation - they may ask for employment history during the application process. One thing I wish I'd known earlier: you can actually file the DAC application up to 4 months before you're eligible to receive your own retirement benefits. So if you're planning to retire in say, October 2025, you could potentially file her DAC application as early as June 2025. The ABLE account is definitely worth setting up once her benefits are approved. Best of luck with everything!

Welcome to the community! Your experience really mirrors what so many of us have gone through with the confusion between DAC and SSI rules. It's frustrating how much conflicting information is out there, even from official sources sometimes. That's great that your daughter is saving for a car - what a wonderful goal! The fact that she has $5,500 saved without any issues from SSA is another reassuring data point for all of us navigating this. Thanks for the tip about researching different states' ABLE programs! I hadn't considered that you could use another state's program. That's definitely something I'll look into when I'm ready to set one up for my daughter. Do you mind me asking what made Ohio's program stand out compared to others? The documentation advice is so important too. Even though we don't have to worry about asset limits with DAC, having everything organized just makes dealing with any government agency so much smoother. It's wonderful to see how many parents here are successfully helping their adult children build financial independence while navigating these benefit systems!

Welcome to the community! Don't feel bad about having your son spend down some of his savings - so many of us have made similar mistakes because the information out there is so confusing! The important thing is that you know now that he can save freely with DAC benefits. It's great that he's working at the library and earning $900/month - that's a nice income while staying well under the SGA limit. The SSA representative's advice about keeping detailed work records is spot-on, even though it might seem like overkill when he's earning well below the threshold. You're smart to research different ABLE programs. From what I've learned in this discussion, it's worth comparing fees, investment options, and ease of use across different states. Ohio seems to get mentioned a lot as a good option, but there might be others that work better for your specific situation. Since your son's cerebral palsy was present at birth, he should definitely qualify for an ABLE account. It'll be a great way to help him build even more savings while getting those tax advantages and additional benefit protections. Thanks for sharing your experience - it helps all of us to hear how different families are navigating these systems!

Welcome to the community! Don't feel terrible about holding back your daughter's Disney savings - you were just trying to protect her benefits with the information you had! It's so common to get confused between DAC and SSI rules, and you're definitely not alone in making that mistake. It's wonderful that your daughter is good with money and has such a fun goal like Disney World! Now that you know DAC benefits don't have asset limits, she can save as much as she wants for her trip. At $600/month from the animal shelter, she's well under the SGA limit, so her work income shouldn't be an issue either. The ABLE account would be perfect for her situation - not only for the Disney fund but also for longer-term financial planning. Since her Down syndrome was diagnosed at birth, she'll definitely qualify. You might want to look into programs that offer good growth options since she's saving for both short-term (Disney trip) and long-term goals. I hope she gets to take that Disney trip soon! It sounds like she's been very patient about saving for it. Thanks for sharing your story - it really helps other parents realize they're not alone in navigating these confusing systems.

Welcome to the community! You're absolutely right to feel relieved about the asset limits - it's such a common misconception that DAC benefits have the same $2,000 restriction as SSI. Your son can keep his $4,000 in savings and continue building on it without any issues once his DAC benefits start! Regarding your question about the work reporting transition - when we applied for my daughter's DAC benefits while she was already working, the SSA representative had us fill out work activity reports during the application process. They wanted details about her job duties, hours, and wages to establish that her work was within acceptable limits for someone receiving disability benefits. The key things they looked for were: confirmation that her earnings stayed under the SGA limit, documentation of any workplace accommodations or supports she needed, and verification that her disability still significantly limited her work capacity despite her part-time employment. Since your son is earning $750/month, he's comfortably under the SGA threshold, which should make the process smoother. Just make sure to keep good records of his pay stubs and work schedule from the start - SSA likes to see consistent documentation. The ABLE account research is definitely worthwhile given his early autism diagnosis. Good luck with your retirement planning and his DAC application next year!

Welcome to the community! I'm so glad you found this discussion before making your daughter spend down her savings - that would have been such an unnecessary setback for her financial goals! It's incredible how much misinformation is out there mixing up DAC and SSI rules. Your spreadsheet idea for tracking monthly work income is brilliant! Even though $800/month is well within safe limits, having that organized documentation is so smart. I wish I had thought of that approach when my family member first started receiving benefits. The fact that your daughter has saved $2,800 while working part-time shows she's really developing great financial habits. With DAC benefits having no asset limits, she can keep building on that foundation without any worries. Since her disability was identified at age 2, she'll definitely qualify for an ABLE account. I've seen several mentions of Ohio's program being popular, but it's worth comparing a few different states' offerings to see what works best for her specific situation and goals. Thanks for sharing your experience and that helpful tracking tip! It's wonderful to see another family successfully navigating this system and helping their adult child build financial independence.