Explain It to Me

A safety net’s poverty trap

Mar 27, 2024

Exploring the challenges of managing finances under the $2,000 asset limit for SSI beneficiaries; discussing the proposed bill to update limits and public response; introducing Able Accounts as a solution to asset cap challenges for individuals with disabilities; highlighting the need to raise asset limits for disability savings accounts; addressing frustrations with legislative barriers.

34:48

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Quick takeaways

SSI recipients face strict $2,000 asset limit, hindering financial stability and savings.

Advocacy efforts highlight impact of SSI's asset restrictions on individuals with disabilities.

Able accounts offer tax-advantaged savings solution for SSI beneficiaries, promoting financial independence.

Deep dives

The Financial Barrier of the $2,000 Asset Limit

Living under a $2,000 asset limit poses severe financial challenges, especially for individuals like Tyler who receive Supplemental Security Income (SSI). The $2,000 limit restricts savings, making it nearly impossible to build an emergency fund or save for future needs. Tyler's experience sheds light on the stress and limitations caused by this outdated financial barrier.

Introduction

3min

Financial Struggles of Individuals with Disabilities

6min

Engagement with Proposed Bill and Understanding of Supplemental Security Income

6min

Navigating Asset Limits in the SSI Program

8min

Evolution of Social Security Benefits and Introduction of Able Accounts for Individuals with Disabilities

4min

Raising Asset Limits for Disability Savings Accounts

7min

Navigating Financial Constraints and Legislative Hurdles

3min

What if you weren’t allowed to have more than $2,000 at any given time? Could you make it work? For people who receive Supplemental Security Income, this isn’t a what-if — it’s reality. SSI beneficiaries are subject to strict requirements and risk losing their benefits if they have more than $2,000 in financial assets, even if they exceed that by just a dollar. Why is the limit so low, and is anything being done to fix it? That’s today on The Weeds.

Read More:

Tyler (@tylerlimaroope) | TikTok

The Case for Updating SSI Asset Limits | Center on Budget and Policy Priorities

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Credits:

Jonquilyn Hill, host

Sofi LaLonde, producer

Cristian Ayala, engineer

A.M. Hall, editorial director of talk podcasts

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