Q: I want to try a credit union no penalty CD but not sure if my SSI would be cut if I tried that out
I'm trying to find alternatives to my current 529 savings account. I want something tax free, but where I can take out I'm emergencies. I don't want to lose my SSI.
A:
It is great that you are looking for alternatives for savings that will not affect your SSI payments. A primary consideration is whether the alternative would be a countable resource or not. A CD is usually countable except when the terms of a timed deposit will prohibit early withdrawal altogether, but even in that case it may affect countable resources when the CD matures. See POMS SI 01140.210 Time Deposits at https://secure.ssa.gov/poms.nsf/lnx/0501140210.
If you are receiving SSI based on a disability that began before age 26, consider placing funds in an Achieving a Better Life Experience (ABLE) account. An ABLE account is a tax-free saving account to cover qualified disability expenses. Social Security disregards the first $100,000 in an ABLE account so that amount is not considered to be a countable resource. For more information go to https://www.ssa.gov/ssi/spotlights/spot-able.html?tl=1%2C2%2C5%2C14.
You may also want to consider an irrevocable Special Needs Trust which is generally not a countable resource. For general information, see https://www.ssa.gov/ssi/spotlights/spot-trusts.htm. Consult an attorney about whether establishing a Special Needs Trust is right for you.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
