Can You Have Investments While on SSDI?

Most individuals can invest their earned income, but what about those receiving Social Security disability benefits? The Social Security Administration imposes stringent limitations on how much income and assets can be owned at any one time.

Rental property, royalty payments and passive investments like ETFs and REITs all count against your savings accounts; however there are special accounts which don’t count against them.


Many websites and television shows provide advice on investing, such as which stocks are performing well and how to invest. But these resources tend to cater towards people with steady incomes; those receiving Social Security Disability Insurance may find it more challenging than expected to find viable investments.

Passive income such as bank account deposits, dividends and investments often won’t affect disability benefits as long as it falls below the substantial gainful activity (SGA) threshold. However, if you plan to work part time while receiving SSDI benefits it’s essential that you notify Social Security Administration about this plan and monitor your earnings so you don’t over-earn.

Rental income from property ownership will not affect your SSDI benefits as long as you can verify that it does not involve active maintenance of upkeep of the home. Real estate can be an excellent way to increase your net worth while on disability as one of the safest investments you can hold onto.


If you collect disability income, it is crucial that you understand how the IRS treats investment income. Consulting a tax professional can be both informative and cost-effective – reduced tax bills and the prevention of an IRS audit will often more than justify their service costs.

SSD benefits may be subject to monthly earning limits, with only “earned” income such as wages from work or profits from active business participation counting toward meeting this test; investment income on the other hand is considered passive income and doesn’t count towards it.

If your investment income could impact the benefits that are due to you, contact an experienced disability attorney immediately. They can devise a strategy to ensure any income remains passive and does not impede upon eligibility for disability payments.


Disability benefits recipients typically have little leftover after paying bills; however, investing a small portion each month is still possible. A federally funded Individual Development Account (IDA) offers the perfect way to start investing, giving individuals the chance to save without reducing SSI or SSDI benefits.

Social Security Administration sets limits on how much income an individual can earn without jeopardizing disability benefits. While these caps apply only to earned income such as earned wages or dividends and interest from investments, these passive forms do not count towards your SSDI eligibility because they do not constitute compensation for work performed. It’s wise to track passive sources like dividends and interest closely so as not to exceed this income cap and lose your benefits.

Estate planning

Estate planning for people with disabilities who cannot work is of vital importance. These people typically rely on public benefits for basic needs like food and shelter; receiving large sums of money as gifts or inheritance could adversely impact this eligibility, which makes the use of a special needs trust (SNT) recommended in such instances.

This type of trust is tailored specifically for people receiving Social Security Income or other government benefits and who come into a significant sum of money, potentially jeopardizing their eligibility if not handled appropriately. According to Piacenti, giving away inheritance from house sale can cause several years’ loss in eligibility – therefore consulting with a special needs attorney who can set up either first party SNTs or third party SNTs as a solution may hold onto inheritance without impacting eligibility status.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

Categorised in: