Your Child Can Save More

As your child makes more money, they can start saving for bigger goals, like college, a car, or someday buying a home. Building assets will be a key to comfort and security for your child’s entire life.

SSI and Medicaid Rules Help People Who Work and Save

Supplemental Security Income (SSI) has a $2,000 resource limit. Also, some people who don't get SSI benefits may still get disability-based Medicaid, which has a $2,000 resource limit in most cases.

However, your child can save way more money than these limits if they get a job.

SSI resource rules for people who work:

• Not all resources are counted, so your child can own a car or get certain types of financial aid for school that won’t be counted against the resource limit.
• ABLE accounts let you and your child put money into a special account where the first $100,000 will not count against the resource limit.
• Savings in a Plan to Achieve Self-Support (PASS) are not counted. These special types of accounts let your child save for specific expenses, like school tuition.
• Assets in certain types of trusts do not count.

Medicaid resource rules for people who work:

• The SSI resource rules also apply to Medicaid.
  • Note: None of the money in an ABLE account is counted towards the Medicaid resource limit, even if you have more than $100,000 in it.
• If your child has income from working, they may qualify for Medicaid for Employed People with Disabilities (MEPD), which has a $12,000 resource limit. Depending on their income, they may have to pay a monthly premium for coverage.
• There are no resource limits for Healthy and Well Kids in Iowa (Hawki) or the Iowa Health and Wellness Plan (IHAWP), which cover children and adults with low income, whether or not they have a disability.
• Medicaid for Kids with Special Needs (MKSN), which covers children with disabilities who are 18 or younger, has no resource limit.