Supplemental Security Income (SSI) is protected income that is not available to meet the needs of any other person. Lump sum payments of retroactive SSI benefits that are paid directly to the client or the client's representative are
not protected income and are treated as any other lump sum payment.
An SSI lump sum payment of retroactive benefits paid for a child under age 18 that is directly deposited into a dedicated bank account is exempt as income and an asset. SSA requires the SSI lump sum benefit be deposited into a dedicated account
- the child being awarded the payment is under age 18 and has a representative payee; and
- the lump sum payment for past-due benefits is greater than 6 times the monthly SSI rate.
Money in the dedicated account can only be used for specific and limited expenses of the disabled child (education, training, medical treatment, or other items related to the child's disability).