Your Child Can Save More

As your child makes more money, they can start saving for bigger goals, like college, a car, or someday buying a home. Building assets will be a key to comfort and security for your child’s entire life.

SSI and Medicaid Rules Help People Who Work and Save

Supplemental Security Income (SSI) has a $2,000 resource limit. Also, some people who don't get SSI benefits may still get disability-based Medicaid, which has a $2,000 resource limit.

However, your child can save way more money than these limits if they get a job.

SSI resource rules for people who work:

• Not all resources are counted, so your child can own a car or get certain types of financial aid for school that won’t be counted against the resource limit.
• ABLE accounts let you and your child put money into a special account where the first $100,000 will not count against the resource limit.
• Savings in a Plan to Achieve Self-Support (PASS) are not counted. These special types of accounts let your child save for specific expenses, like school tuition or starting a business.
• Assets in certain types of trusts do not count.

Medicaid resource rules for people who work:

• The SSI resource rules also apply to Medicaid.
  • Note: None of the money in an ABLE account is counted towards the Medicaid resource limit, even if you have more than $100,000 in it.
• If your child is 16 or older and has income from a job, they may qualify for the Medicaid Buy-In for Workers with Disabilities, which has a $15,668 resource limit. Your child may have to pay a monthly premium for coverage.
• There is no resource limit for income-based Medicaid, no matter how old your child is.