If you’ve been getting monthly payments from Social Security, you might wonder, does selling your house mess that up?
Well, the answer depends on which type of benefits you’re getting.
Regular Social Security or Disability? You’re in the Clear
If your monthly checks come from retirement benefits or Social Security Disability, you’ve got nothing to worry about.
You can sell your home, make a profit, and it won’t touch those payments. The government doesn’t stop your checks just because you got some extra money from selling your place.
The only time your earnings can reduce your Social Security is if you’re still working before hitting full retirement age. But cash from selling a house? Doesn’t count.
But If You’re on SSI, That’s When You Need to Be Careful
Now, things are a little different if you receive SSI.
SSI is meant for people who don’t have much money saved up. So, if you sell your house and end up with a bunch of cash sitting in your account, that could pause your payments for a while.
Here’s the Deal with the Money Limit
Let’s say you sell your home. What happens next?
- You get three months to buy a new one without affecting your SSI.
- After buying, you need to make sure you’re not holding on to more than $2,000 in leftover cash.
- If you do? Your payments could stop until you spend that money down.
And if you don’t buy a new house in those three months? Same story, too much cash, no SSI for now.
How to Get Your Payments Back If They Stop
You still have options even if your payments stop. You’ve got a year to spend that extra cash the right way and ask to have your SSI started again.
But if you wait too long? You’ll need to apply all over again.
What You Really Need to Know
If you’re living off regular Social Security or disability, sell your house without worry.
But if you count on SSI, plan ahead before making a move.
