Will my class action settlement refund of $2100 affect my SSI eligibility?

u have to report it within 10 days i think. just spend it quick and ur prolly fine. buy something u need.

You absolutely need to report this to Social Security, and yes, it does count toward your resource limit for SSI purposes. However, you're remembering correctly - you do have options here. Unlike the previous settlement, this smaller amount is subject to what's called the "spend down" rule. You have until the end of the following month after receiving it to spend the excess resources (the $100 over limit) to maintain SSI eligibility. So if you received it in May, you have until the end of June to spend that $100+ and get back under the $2000 limit. Here's what you should do: 1. Report the payment to SSA within 10 days of receiving it (mandatory) 2. Document when you received it (keep a copy of the check and envelope) 3. Spend the excess amount before the end of next month 4. Keep receipts of whatever you spend it on (should be legitimate expenses) This is different than larger settlements that might qualify for a PASS plan or special needs trust. For this small amount, a simple spend-down is your best option.

I HAD ALMOST THE EXACT SAME THING HAPPEN!! I got a settlement check for $1750 last year and panicked because of my SSI. Called SSA for THREE DAYS straight and couldn't get through to a real person!!! Just disconnected every time after waiting 2+ hours!!! So frustrating!!! Finally I found this service called Claimyr that got me through to an actual SSA agent in 20 minutes. Their website is claimyr.com and they have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent told me I needed to report it AND spend down any amount over $2000 before the end of the next month. Kept my benefits with no problems. Worth checking out if you're having trouble reaching someone at SSA.

Just to add some clarification here - the type of settlement matters a lot for SSI reporting. Some settlements are specifically excluded from resource counting, like disaster relief payments or certain victims' compensation payments. Your pre-need funeral plan refund likely doesn't fall into an exempt category, so the standard rules apply: 1. Report within 10 days (mandatory) 2. You have until the end of the following month to spend down 3. After that, anything pushing you over $2000 will make you ineligible Also, be careful what you spend it on. Buying a resource that counts (like a second vehicle) won't help. Best to use it for rent, food, bills, or other consumable expenses. Keep all documentation. One option worth exploring: you could actually put the full amount into a proper funeral/burial arrangement which IS exempt from SSI resource limits. Since it was originally for a pre-need plan anyway, this might be the simplest solution.

Im on SSI to and get SSDI. It's confusing cause there diffrint. The SSDI doesn't have asset limits but SSI dose. So you can have unlimited money in bank for SSDI but only $2000 for SSI. Thats why some people try to get off SSI if there SSDI payment is enuf. But you probly need both. I had to report when I got backpay from my uncle dying. Spent it on a new fridge and fixing my car so I got under the $2000 limit fast. Didn't have problems.

i think theres a special rule about funeral trusts being exempt from the $2000 limit? maybe you could put the money back into an actual funeral plan and then it wouldn't count? just thinking out loud here

Whatever you do, DON'T just ignore it and not report it!!! My cousin didn't report a small insurance payment and ended up with an overpayment notice for six months of benefits they wanted back! The SSA computer systems eventually find these things through tax records or banking information. You have to report it within 10 days of receiving it. That's non-negotiable. But after that, you have options for how to handle it. The spend-down period gives you time to plan. I'm wondering though... if this was from a pre-need funeral plan, could you just use the money to establish a new pre-paid funeral arrangement? Those are exempt from SSI resource limits completely. Might be the cleanest solution!

also just wanna say the whole $2000 limit is ridiculous in 2025!!! how is anyone supposed to save anything with that stupid rule??? cant even have emergency savings without losing benefits smh