Building Your Assets and Wealth


ABLE accounts let people who have disabilities that began before they turned 26 keep money in a special tax-advantaged account. The first $100,000 in an ABLE account does not count against the $2,000 Supplemental Security Income (SSI) resource limit, and none of the money in an ABLE account counts for Medical Assistance or SNAP (formerly Food Support/Food Stamps).

However, ABLE accounts have restrictions:

  • They can only be opened through specific programs or institutions.
  • You can only open one ABLE account.
  • You and the other people making contributions on your behalf have limits on how much you can deposit each year:
    • Up to $17,000 in total deposits can come from any source (you, your family and friends, your benefits, and other unearned income), plus
    • If you have a job, another $13,590 in deposits can come from your own earned income.
      • Note: If you or your employer make contributions to a retirement plan set up by your employer, you might not qualify for the extra ABLE contribution amount based on having a job (you can still make regular ABLE contributions). If you aren't sure about this, ask your ABLE account program or check with a tax expert. Get more information about this rule from the ABLE National Resource Center.
  • You can only use money in an ABLE account for specific things, such as:
    • Education
    • Housing
    • Transportation
    • Help getting and keeping work
    • Health care
    • Assistive technology, and
    • Other approved expenses.

Learn more about ABLE accounts.

An Individual Development Account, also known as an “IDA," is a savings account for low-income workers that can be used for small-business development, higher education, or the purchase of a first home.

Each time you make a deposit, the IDA program contributes an additional deposit called a match. Most IDA programs have a match of one to four times the size of the deposit you make. So for an IDA with a 2:1 match, each time you deposit $25, you get an additional $50 toward your savings goal.

Each IDA program may have slightly different eligibility requirements. Generally speaking though, the following will apply:

  • Your annual income must be within 200% of the Federal Poverty Guidelines ($29,160 for an individual, $39,440 for a couple)
  • You must have earned income. For an IDA that is funded by Temporary Assistance for Needy Families (TANF) or the Assets for Independence Act (AFIA), this means income from work. IDAs that get funding from other organizations and agencies may have slightly different earned income requirements and allow for income from other sources

Many IDA programs also have asset and credit history limits. Once you’re enrolled in an IDA program you must take free financial education training classes.

IDAs that are funded by Temporary Assistance for Needy Families (TANF) or the Assets for Independence Act (AFIA) can be used for three purposes:

  • Developing a business
  • Investing in higher education, or
  • Purchasing a first home

IDA programs that are funded by other sources may let you save for other purposes like buying a car or computer. Check with the specific IDA program you want to participate in for more information.

First, you need to decide whether you want to open an IDA and what your goal is. Then, you will need to find a program in your area. You can use the IDA Directory to find one near you. Next, you will need to attend an orientation meeting to find out about the program and verify your eligibility.

Once accepted into the program you will open a savings account at a bank that is tied to the IDA organization. When you have reached your savings goal, you’ll be allowed to start withdrawing money from the account to spend on your goal.

No. Disability status is not required to participate in an IDA program. IDAs are offered to anyone who can meet the eligibility requirements.

For Minnesota residents, the best place to look for an IDA program is the Family Assets for Independence in Minnesota (FAIM) program

Yes. An IDA can be a part of your PASS plan. The only requirement is that your goal for each program be the same.

Yes. You should ask your IDA caseworker to write a letter stating that you can participate in the IDA program without losing your SSI benefits. The letter should specifically mention the “Exclusions under Other Federal Statutes” clause. You should take the letter to Social Security for documentation and keep a copy of it for yourself.

Yes. There are no asset restrictions for people on SSDI who want to participate in IDA programs. However, your earned income is still subject to the SSDI work rules.

Yes. Most IDA programs only let you save a certain amount of money in your account—often $4,000 to $6,000. This includes the money you deposit as well as the matching funds. Once you reach the limit, you won’t be allowed to deposit any more money.

A PASS lets people on SSI set aside money and assets for a specified work goal. The purpose of a PASS is to help you get items, services, or skills needed to reach your work goal.

The work goal that you choose should help you earn enough to lower or get rid of your need for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits.

Social Security's PASS Cadres are PASS experts. Their job is to help people come up with a plan and apply successfully for a PASS.

You can contact the St. Paul PASS Cadre (serving all of Minnesota), at 1-866-667-6032, ext. 34021.

Under Supplemental Security Income (SSI) rules, any income that you get will lower your SSI benefit. But, if you have an approved PASS, you can use that income to pay for the items needed to reach your work goal.

Social Security will not count the money that is set aside under a PASS plan when deciding your monthly SSI benefit. This means you will get a higher SSI payment. Getting a PASS can also let you get an SSI check if your income or assets are currently above the limits.

To be eligible to use a PASS you must:

  • Want to work
  • Be eligible to get Supplemental Security Income (SSI) because of disability or blindness, and
  • Have other income and/or assets to complete a work goal

SSI recipients who get benefits because they are above age 65 can only qualify for a PASS if they were getting SSI because of disability or blindness in the month before their 65th birthday.

You can use a PASS to set aside income and assets to use for reaching a specific work goal. A PASS lets you buy equipment, services, or training. For example, a PASS can be used towards going to school for specialized training for a job. It can also be used towards starting your own business.

To participate in a PASS you will need to have:

  • A written plan
  • A work goal
  • A reasonable time frame for meeting your work goal, and
  • An explanation of the expenses necessary to achieve the work goal

If your PASS plan is for self-employment, you must provide a detailed business plan that gives a description of how you intend to make this business succeed.

Yes. To be able to use a PASS you must continue to meet Social Security’s requirements for disability or blindness. Social Security will also consider any medical conditions when they decide if you have a reasonable work goal. For example, they may ask you to revise your PASS if you have trouble standing for long periods of time and want to work as a traffic officer.

Yes. To be eligible for a PASS, you must meet the asset requirements for Supplemental Security Income (SSI). You are allowed to have $2,000 in resources ($3,000 for a couple), one house that you live in, and one car.

If you have resources above the eligibility limits, you can set aside the extra resources as part of your PASS.

Creating a PASS requires that you have a work goal and an explanation of how you will be able to accomplish this goal. If you currently do not have a clear work goal or a clear way to achieve it, you may want to consider working with organizations like your state Department of Vocational Rehabilitation.

It can be very helpful to work with a local PASS expert when starting this process.

If your PASS plan is for self-employment, you must provide a detailed business plan that gives a description of how you intend to make this business succeed.

If you have savings in an IDA that gets federal funding from Temporary Assistance for Needy Families (TANF) or Assets for Independence Act (AFIA) block grants, those savings will not be counted as assets. This means you can save money in those types of IDAs without jeopardizing your SSI and MA benefits.

Savings in an IDA that is not federally funded, however, can count as assets, and can affect eligibility for MA, SSI, and other benefit programs. Rather than saving money in a non-federally funded IDA, you might want to explore setting up a PASS. Most disability benefit programs do not count funds saved in a PASS as assets. To learn more, contact a PASS Cadre.

The University of Montana Rural Institute's List of Successful PASS Plans is an excellent resource.

The Earned Income Tax Credit is a federal tax program that lowers the amount of income tax owed by low-to-moderate income workers. The credit ranges from $2 to $6,935 depending on your income and the number of qualifying children in your family.

You can claim an EITC every year that you qualify.

To be eligible for the Earned Income Tax Credit (EITC) you must:

  • Have earned income from employment, self-employment or employer-paid disability benefits you got before retirement
  • Meet adjusted gross income requirements
  • Have a Social Security Number valid for employment
  • File a joint tax return if married
  • Be a U.S. citizen or legal resident. If you’re a nonresident alien, you must be married to a U.S. citizen or legal resident and filing a joint tax return
  • Live in the U.S. for more than half of the year
  • Be 25 to 64 years old, if you aren’t claiming any qualifying children (if you are claiming qualifying children, you can be any age)

In addition, you cannot:

  • Claim foreign income using Form 2555
  • Have investment income that exceeds $10,000 for 2022
  • Be the dependent of another person
  • Be the qualifying child of another person

If you are eligible, you can claim an EITC while filing your annual federal tax return, IRS Form 1040. If you have a qualifying child, attach a Schedule EIC.

While there are no asset requirements to claim the EITC, you cannot have investment income that exceeds $10,000 in 2022 (filing by April 2023).

The value of your EITC is based on your adjusted gross income and the number of qualifying children in your family. You can calculate your EITC yourself by using the Earned Income Credit Worksheet in Form 1040. Or you can ask the IRS to calculate it for you by noting an “EIC” in the Earned Income Credit line on your tax return.

You can claim your Earned Income Tax Credit while filing your annual federal tax return.

If you are on a limited income, do not pay someone to do your taxes. Use a Volunteer Income Tax Assistance (VITA) Center to file. Most centers can e-file your return for free.

To find the nearest VITA site, visit Minnesota Revenue or call 1-800-652-9094.

A Special Needs Trust, sometimes called a supplemental needs trust, is a legal arrangement in which a person or organization (like a bank) manages assets for a person with a disability. The person with the disability is called the “beneficiary” and the person who is managing the assets is the “trustee”. Many kinds of assets can be put into a trust, such as cash, stocks, bonds, and real estate.

Supplemental and Special Needs Trusts are trusts created to benefit a person with a disability by supplementing the government benefits they get. Both types of trusts are irrevocable, meaning that once they have been created, the person that created them cannot change the terms of the trust, end the trust, or take out the assets in the trust. Both are set up in order to give money to pay for things not covered by government programs.

Although Supplemental and Special Needs Trust are similar, they aren’t exactly the same. If the person with a disability, or their spouse, funds the trust with their own money, it is a Special Needs Trust. If the trust is funded by someone else, such as a parent or grandparent, then it is a Supplemental Needs Trust. Both types of trusts can hold assets without those assets being considered available for MA or SSI asset limit purposes. Both types of trust are designed to improve the beneficiary’s quality of life by providing medical, rehabilitative, recreational or educational aid not provided by governmental assistance.

Learn more