How Does the SSA Check Bank Accounts?
Traditionally, the SSA only relies on the information reported by recipients to determine their bank money. But with some beneficiaries not declaring all their bank accounts, the SSA stopped relying on this self-reporting system.
Instead, they developed a process called Access to Financial Institutions (AFI). This is an automated system of verifying reported bank accounts with financial institutions.
Aside from verifying alleged bank accounts, AFI can also detect undisclosed bank accounts. It uses a unique search criteria called geographic sources. For each review, the SSA will conduct up to 10 geographic searches to determine excess resources in the bank accounts of SSI recipients, beneficiaries, and deemors.
What Type of Bank Accounts Does the SSA Look Into?
Not all bank accounts will be subjected to SSA monitoring. In general, the SSA will only look at financial accounts it considers as part of your resources. This includes:
- checking account
- savings account
- Christmas club accounts
- certificates of deposits
- money market accounts
- life insurance accounts
Exceptions to the above include:
- burial funds (up to $1,500)
- funds set aside under Plan to Achieve Self-Support (PASS)
- funds in an Achieving a Better Life Experience (ABLE) account established through a State ABLE program (up to $100,000)
- grants or gifts set aside to pay educational expenses for nine months after receipt
- money saved in an Individual Development Account (IDA)
- certain types of trusts
Can the SSA Take Money Out of Your Account?
No, the SSA cannot take money out of your bank account. Federal laws forbid the SSA to garnish bank accounts, even for overpayment recoups. Your bank account can only be garnished if you’re convicted of social security fraud and the court orders the garnishment.
How to Know if the SSA is Checking Your Bank Account
Depending on the reason why the SSA is checking your bank account, you may or may not receive any notification of such.
When you’re applying for SSI, it’s a given that the SSA will check your bank accounts. If it’s for SSI Redetermination, the SSA will also send you a notice informing you about it.
However, if you’re suspected of fraud, the SSA will obviously not tell you about it. If such is the case, there is no certain way of telling whether the SSA is looking into your bank accounts.
What Happens if Your Bank Balance is Higher Than the SSI Limit?
If your bank account balances go over the SSI limit, your SSI payments will not necessarily stop. Or if you’re still applying for benefits, your claim will not necessarily be declined.
The SSA will still look into what caused the spike in your bank account balance. If it’s a temporary cash inflow, like lottery winnings or income from a sale of personal property, it will only temporarily reduce your benefits.
However, if the SSA deems that your resources are beyond the SSI’s limit, your benefits may stop. If there are any fraudulent activities on your part, it may also lead to penalties and even incarceration.
