Q: Q: Do you have to contact and notify SSI if you opened an Able account and transferred a 529 into the Able account?
My 23 year old daughter is mentally disabled and receives SSI and I am her payee. We recently opened an ABLE account for her to transfer a 529 into since she will never be able to use the money for education. As her payee do I have to contact SSI and notify them of the account? I understand that as long as an ABLE account is under $100,000 it has no affect on her benefits. The account is only $17,000 and was just opened on 10/6/2023. Since it has no affect, do I still have to report this change to them?
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A:
As a representative payee for your daughter who receives SSI, it's your responsibility to report changes that might affect her benefits. While it's true that funds in an ABLE account, up to $100,000, are exempt from counting as resources for SSI purposes, it's still generally a good practice to report the establishment of the account to ensure there's a clear record.
Transferring funds from a 529 plan to an ABLE account can be a strategic move to preserve SSI eligibility. As of the date you provided, the balance is well under the $100,000 limit. However, even if the balance doesn't affect her benefits, notifying the Social Security Administration about the ABLE account can help avoid any potential misunderstandings or complications down the road. It's always better to maintain transparency with such agencies.
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