Social Security Disability Insurance (SSDI) is designed to help people who can’t work due to a disability. But, did you know that your benefits can be suspended or even stopped under certain circumstances? Here’s a breakdown of what could cause your SSDI benefits to end, and how you can avoid penalties.
Once you’re approved for SSDI benefits, they will continue as long as you remain eligible. If your disability prevents you from working, you should continue receiving these payments. However, the Social Security Administration (SSA) has rules that could lead to your benefits being terminated. Let’s look at some scenarios where you could lose SSDI benefits.
Health improvements: Why you could lose your SSDI benefits
It’s possible that your health may improve over time, especially with advances in medical treatments or technology. If you recover and no longer meet the definition of a disability under SSA rules, your SSDI benefits could stop. For example, if you have a serious illness and make a full recovery, you might not qualify as disabled anymore. In that case, your benefits would be terminated.
The SSA has specific rules when it comes to working while receiving SSDI. If you participate in the Trial Work Period and exceed the earnings limit during the re-entitlement period, your benefits could be suspended. The Trial Work Period allows you to test your ability to work without losing your benefits, but once you exceed the Substantial Gainful Activity (SGA) limit, the SSA may stop payments. Here’s a quick look at what can trigger a suspension of SSDI benefits:
- Completing the Trial Work Period and earning above the SGA limit.
- Failing to report work activity to the SSA.
- Earning above the SGA limit during the 36-month re-entitlement period.
The good news is that if your income drops below the SGA level during the re-entitlement period, you can have your SSDI benefits reinstated.
SSDI benefits and prison: When will payments stop?
If you are incarcerated for more than 30 consecutive days, your SSDI benefits will be suspended. This applies to both SSDI and retirement benefits. The SSA doesn’t provide benefits to individuals in a jail or prison, as it is considered a government-paid institution. But what if you’re in prison for a short time? In that case, your benefits may be temporarily suspended. To avoid penalties, it’s crucial to report certain life changes to the SSA, including:
- Any improvement in your health.
- Starting a new job or earning income above the SGA level.
- Being confined in jail, prison, or any institution at public expense.
If you’re unsure about whether you should report something, it’s best to call the SSA at 1-800-772-1213 or visit your local SSA office.
Social Security Disability Insurance benefits are vital for those who need them, but keeping your benefits requires staying informed and reporting changes. Remember to communicate any updates in your health or work status, and be aware of how your time in prison could affect your payments. By staying proactive and following the rules, you can ensure your SSDI benefits continue without issue.