How Trump Accounts Could Put Future Disability Benefits at Risk
Summary
The Trump Accounts program helps families save money for their children, but it could cause problems for disabled kids who rely on Supplemental Security Income (SSI) and Medicaid. When the child turns 18, the account balance may count as assets and could exceed the $2,000 SSI limit, risking loss of benefits.Key Facts
- Trump Accounts allow families to save money for children, with a $1,000 federal contribution for babies born from 2025 to 2028.
- Disabled children who receive SSI face a strict $2,000 asset limit to keep their benefits.
- While kids are under 18, Trump Account balances do not count toward SSI asset limits.
- Once the child turns 18, the full Trump Account balance counts as assets for SSI eligibility.
- With an average 4% growth, the $1,000 starting amount could grow past $2,000 by age 18.
- Exceeding the asset limit can suspend or end SSI payments and Medicaid services.
- The old $2,000 asset limit law has not changed for nearly 40 years and limits savings for disabled people.
- Families might protect savings by moving funds to ABLE accounts, designed for disability-related expenses.
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