Will Opening a Trump Account for My Kids Affect Our Benefits?
Anonymous asked:
Our family relies on SSI and SNAP. Will opening a Trump Account for my eligible kids affect our benefits in any way?
A Trump Account generally won’t hurt a child’s SSI while they’re under 18. But once the child reaches the year they turn 18, the money can start counting toward SSI’s asset limit. There is a special opportunity to move the money into an ABLE account during the year the child turns 17 if they’re eligible.
But wait - we've got more details for you below!
Get Answers. Find Help. Stay Informed.
Our free emails keep you updated on benefits, assistance programs, discounts, grants, and other resources that can help you save money and access the support you need. We also share answers to common questions from our community, so you can stay informed without spending hours searching for reliable information.
What You Need to Know
The confusing part is that SSA calls childhood the “growth period” and describes everything in terms of calendar years instead of simply saying “before 18.”
Here’s how the rule translates into plain English:
- While the child is young: The money sitting in the Trump Account does not count toward SSI’s asset limit. Money contributed directly to the account generally doesn’t count as SSI income either.
- The year the child turns 17: This is an important planning year for a child with a disability. If the child qualifies for an ABLE account, SSA allows the Trump Account to be transferred directly into the ABLE account during this year.
- January 1 of the year the child turns 18: This is the potential problem. The Trump Account can now become a countable SSI asset. That matters because SSI has a very low asset limit.
For example, imagine a child turns 18 in October 2040. SSA doesn’t wait until their October birthday. The Trump Account can begin counting for SSI on January 1, 2040. That’s why families using SSI may need to deal with the account while the child is still 17.
And the ABLE provision is especially important because SSA generally excludes up to $100,000 in an ABLE account when determining whether someone exceeds SSI’s resource limit.
The official source is SSA’s Trump Account policy, POMS SI 01120.250.