1621.1 What funds must the SSA pay into a dedicated account?
The SSA must pay certain large, past-due SSI payments to blind or disabled children directly into a separate, “dedicated account” in a financial institution.
1621.2 Why does the SSA call it a dedicated account?
We call this separate account a “dedicated account” because you can use the funds in this account only for certain expenses, primarily those related to the child's disability.
1621.3 How should I maintain the dedicated account?
You should maintain the dedicated account as follows:
You must keep it separate from any other savings or checking account you set up for the beneficiary; and
Except for certain subsequent underpayments, you must not put other funds in the account.
1621.4 Does the SSA count money in the account as a resource?
No, the SSA does not count money in the dedicated account as a resource. Also, interest earned on the money in a dedicated account does not count as income or a resource.
1621.5 How can I use the money in a dedicated account?
You can use money in a dedicated account only for the following allowable expenses for the benefit of the child:
Medical treatment and education or job skills training;
If related to the child's disability, personal needs assistance, special equipment, housing modification, and therapy or rehabilitation; and
Any other item or service related to the child's disability that we determine to be appropriate.
If you have doubt whether an expense in this category is appropriate, you should first get our approval.
1621.6 What happens if I use the money incorrectly?
If you use money from the dedicated account for anything other than the expenses shown above, you must repay us from your own funds in an amount equal to what you spent.
1621.7 What records of the account must I keep?
You must keep a record of all money taken from this account and keep receipts for all items or services bought. You must maintain these records for a minimum of two years because periodically we may ask to review them.
Last Revised: Feb. 13, 2009