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another SSI question

PipSqueak0313PipSqueak0313 member
in Special Needs

For the purposes of parental resources, how are 401k's treated?  Can the parents really only save $2000-3000 for their retirement years (that's the impression I got during a presentation from the local DS group).  In other words, dh has saved a fair chunk of money in a 401k before we got married do we have to withdraw that money and pay the heavy penalties until there is almost nothing left before ds2 can receive SSI?  I've tried reading the information on the SSA website but it isn't helping me understand this at the moment.

Thanks.

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Re: another SSI question

  • Assembly_ReqdAssembly_Reqd member
    edited September 2013
    I found this on a message board, but it does have links to back it up....

    https://secure.ssa.gov/apps10/poms.nsf/lnx/0501330220!opendocument

    401k, pension funds, IRAs are excluded from resource deeming from parent to child as long as those funds remain as retirement funds.

    401k, pension funds, IRAs are considered countable resources to any SSI recipient even though there are penalties and tax consequences for cashing them in early.

    https://secure.ssa.gov/apps10/poms.nsf/lnx/0501330000!opendocument

    You are right about spending money on house repair, a better car (while selling the old one), burial plots, burial funds as a method of keeping your assets without affecting SSI benefits. However, the month you receive this money, it will be income for SSI unless it is converting an excluded resource (like a home equity loan) to a countable resource (cash in the bank).

    Anything that the parents have over $3000 is deemed available to the child and added to the child's own resources (often zero) and compared to $2000. If the child has zero, the parents can have $5000.

    You need to save bank statements and other documents proving resource values for at least 24 months so SSA can review them when a redetermination is conducted"


    UGH! those links aren't working!!!! FIXED!!! Scroll down past the index to get to the section.....
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