Can You Have Investments While on SSDI?

SSDI recipients may worry that having savings accounts and passive income sources, like investments, could violate Social Security Administration (SSA) guidelines and result in their disability benefits being suspended or terminated.

Only earned income counts towards Social Security’s monthly disability payment limit; unearned sources like investments, rental property rent and passive income don’t count towards this limit.


There are various resources online and on television available to those looking to invest their money, but it can be challenging determining what types of investments would best serve those receiving Social Security disability benefits.

SSDI recipients can hold Traditional and Roth IRA accounts without incurring income guidelines violations; employee-sponsored retirement plans like 401(k) and 403(b) plans can also be invested without impacting eligibility for SSDI benefits.

Other types of investments, like stocks and mutual funds, are subject to tax when sold for a profit. When investing disability benefits it is wise to consult a vetted financial advisor in your area; SmartAsset’s free tool connects users with vetted advisors nearby who can help plan for their future.

Brokerage Accounts

Brokerage account investments don’t count against SSDI income limits like employer-sponsored retirement accounts do; however, you should consult with a financial professional first about fees and investment options of each brokerage firm you plan on opening an account with.

The Social Security Administration only permits beneficiaries of disability benefits to have “resources” totaling no more than $2,000 ($3,000 for couples) while collecting disability payments. Resources include money saved in savings accounts or value of property owned and passive income sources like rental income.

Some brokerage firms provide tax-favored accounts tailored to individuals with disabilities called ABLE Accounts that allow investing without impacting eligibility for public benefit programs such as Social Security Disability Income or SSDI.

Savings Accounts

Savings accounts offer an ideal place for consumers to store cash and earn interest, with most financial institutions offering such accounts as an option. They’re suitable for short-term goals like college savings plans and are often protected by the Federal Deposit Insurance Corporation (FDIC). Savings accounts typically don’t provide users with debit card access or check writing capabilities.

Money held in savings accounts may count against Social Security’s resource limits for Supplemental Security Income benefits (SSI), though if it was earned prior to being approved for SSDI payments it shouldn’t alter eligibility.

SSI beneficiaries may also qualify for ABLE accounts, which allow them to save up to $100,000 without impacting means-tested benefits eligibility – yet only a minority have taken advantage of this tax-advantaged solution.


An annuity is an insurance contract that allows you to invest a lump sum or series of payments and receive an income stream in return. Annuities can begin payout either immediately or at some future date; those starting immediately are known as immediate annuities while those starting later are known as deferred annuities.

Investors have their choice between fixed, variable and indexed annuities; each offers its own risk and returns profile. Before investing any money into one of these investments, make sure all other financial matters are in order – such as having an emergency savings fund in place, maxing out employer 401(k) contributions and paying down debt at high-interest rates. Income generated from an annuity may affect Social Security retirement benefits negatively.

Passive Income

Social Security Administration (SSA) does not count unearned income such as royalties, pensions, dividends and interest from investments (ETFs or REITs), but there are other ways of earning passive income such as renting out space in your home or garage, writing an e-book or digital guide or painting or sculpting artworks – these all can add up.

Passive income can provide an important supplement to your primary source of revenue, but having multiple streams is crucial if anything goes amiss with one. To create passive income streams, contact an investment professional about which options best match your financial goals and risk tolerance; The Khaki Law Firm can also assist in determining whether rental properties or equipment constitute substantial gainful activity.

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.

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