Using a PASS Plan to Save Money While on SSI? (w/Examples) + FAQs

Yes, you can use a Plan to Achieve Self-Support (PASS) to save money for a work goal while receiving Supplemental Security Income (SSI). A PASS plan is a formal written plan approved by the Social Security Administration (SSA) that lets you set aside money and other assets that would normally make you ineligible for SSI. This allows you to pay for items like education or business start-up costs without your SSI benefits being reduced or stopped.

The primary conflict this solves is created by the foundational rules of the SSI program itself. Federal regulation 20 C.F.R. § 416.1100 establishes that SSI is a needs-based program, and any income you receive typically reduces your benefit payment. This rule directly penalizes you for working or saving money, creating a trap that makes it almost impossible to save for the tools or training needed to get a better job and become financially independent.

The PASS program, authorized under 20 C.F.R. §§ 416.1180-1182, is the specific legal exception to this rule. It creates a protected way to use that extra income for a work goal. Despite its power, the program is deeply underutilized; between 2000 and 2016, the number of people using a PASS plan dropped by 50%, with only 692 users nationwide in 2016.¹

Here is what you will learn by reading this guide:

✅ How to legally shield your work earnings or even an inheritance so they don’t lower your monthly SSI check.
💰 The specific steps to turn a Social Security Disability Insurance (SSDI) check that is too high for SSI into the exact tool that qualifies you for monthly SSI payments.
🚗 The detailed rules for getting the SSA to approve funding for major purchases, including a car, computer, or specialized equipment for a new business.
📝 A line-by-line walkthrough of the official application, Form SSA-545-BK, explaining what the SSA is really looking for in each answer.
🤝 How to build a free support team of experts, including PASS Specialists and Benefits Planners, who can help you get your plan approved.

The Financial Trap of SSI and How a PASS Sets You Free

The Supplemental Security Income (SSI) program is designed to help people with disabilities who have very little income and few resources. To make sure the program helps those most in need, the Social Security Administration (SSA) has strict financial limits. These limits create a major problem if you want to work and save money to build a better future.

Under normal SSI rules, almost any money you get reduces your SSI check. If you save that money, it can quickly push you over the resource limit and cause you to lose your benefits completely. This creates a catch-22: you need money to pay for education or tools to get a better job, but the act of earning or saving that money puts your essential SSI benefits and Medicaid at risk.²

A Plan to Achieve Self-Support (PASS) is the SSA’s solution to this problem. It is a formal work incentive that lets you set aside income and resources specifically to pay for things you need to reach a work goal.³ When the SSA approves your PASS, they agree to ignore the money you set aside when they calculate your SSI eligibility and payment amount.⁴

This powerful exception allows you to fund your career goals without being penalized. It transforms money that would have hurt you into a tool that helps you. This is the core function of a PASS plan: it temporarily suspends the rules that discourage work, creating a bridge from benefit dependency to financial independence.

Who Is a Perfect Candidate for a PASS Plan?

You are a good candidate for a PASS if you receive SSI, or if you could receive SSI if you didn’t have other income or resources putting you over the limits.⁵ This is a critical point. Many people who receive Social Security Disability Insurance (SSDI) are told they cannot have a PASS because they are not on SSI, but this is incorrect.⁶ A PASS is often the exact tool that helps an SSDI recipient become eligible for SSI.

Beyond that, you must have a source of money to put into the plan. This can be wages from a job, your SSDI check, or savings you have that are over the SSI resource limit.⁷ You also need a specific work goal that will realistically lead to you earning enough to reduce or stop needing disability benefits.⁸

Finally, you must be able to live on your SSI income while your other money is being used for your PASS expenses.⁷ The PASS protects your career savings, while the SSI check is there to cover your basic living expenses like food and rent.

The Two Superpowers of a PASS Plan: How It Boosts Your Money

A PASS plan has two main financial functions that can dramatically improve your situation. It can either increase your monthly SSI payment, or it can make you eligible for SSI for the very first time. Both scenarios give you more money to live on while you invest in your future.

Superpower #1: Increasing Your Monthly SSI Payment

If you already receive SSI but also have other income, like from a part-time job, that other income reduces your SSI check. For every $2 you earn from work (after a small initial amount), your SSI payment goes down by $1. This can feel like you are working hard but not getting ahead.

With an approved PASS, you can set aside that income to pay for your plan expenses. Because the SSA agrees not to count this set-aside money, your “countable” income can drop to zero. As a result, your SSI payment can increase, often up to the maximum federal benefit rate, which is $967 for an individual in 2025.⁴ The SSA effectively replaces the money you spend on your career goal, allowing you to use your earnings for your future while your SSI covers your present needs.

Superpower #2: Making You Eligible for SSI

Many people on SSDI have too much income to qualify for SSI and the state Medicaid benefits that often come with it. A PASS provides a direct path to eligibility for this group. By agreeing to set aside the portion of your SSDI check that is over the SSI income limit, you can lower your “countable” income.¹⁰

This allows you to become eligible for and start receiving a monthly SSI check. You can then use the SSI payment for your living expenses, while your SSDI payment funds your career plan.¹⁰ This is a game-changing strategy that turns a disqualifying income source into the very key that unlocks SSI eligibility.

Crafting a Work Goal That Gets a “YES” from the SSA

The most important part of your PASS application is your work goal. The SSA will not approve a plan with a vague or unrealistic goal. To get approved, your goal must be both feasible and part of a viable plan.⁸

What Makes a Goal “Feasible”?

A goal is feasible if the SSA believes you have a reasonable chance of doing the job. They look at concrete facts to decide this.⁸ They will consider your disability and its limitations, your age, your past work experience, and your education.¹¹

For example, a goal to become a roofer might not be feasible if your disability prevents you from climbing or balancing. However, a goal to become a certified public accountant could be perfectly feasible. You must show that your chosen career is a realistic match for your abilities and circumstances.

What Makes a Plan “Viable”?

A plan is viable if it is a logical and well-structured roadmap to your goal. The SSA needs to see that you have thought through the steps and that your budget makes sense.⁸ They will look at your timeline, the specific milestones you set, and whether you will have enough money from your SSI check to live on after setting aside funds for your PASS.¹²

Your goal must also be specific. “Working from home” is not a work goal; it is a location.¹³ “Starting a home-based medical billing business” is a specific, measurable goal that can be approved.¹⁴ Likewise, “getting a degree” is a step, not a goal. “Becoming a high school history teacher after earning a bachelor’s degree and teaching credential” is a complete work goal.¹³

The 3 Most Common PASS Plan Scenarios

PASS plans are flexible and can be adapted to many different situations. Here are the three most popular scenarios, showing how a PASS can solve specific financial problems and open doors to new careers.

Scenario 1: The College Student

Maria receives SSI and works part-time at a bookstore. She wants to become a graphic designer but cannot afford the tuition for a two-year associate degree program. Her part-time job reduces her SSI check, leaving her with no extra money to save.

Maria works with a benefits planner to create a PASS. Her work goal is “to become a graphic designer.” The PASS allows her to set aside all her earnings from the bookstore to pay for her college expenses.

Expense Funded by PASS	Result for Maria
College Tuition & Fees	Maria can enroll in the graphic design program without taking on student loan debt.¹⁶
Books & Art Supplies	She can purchase all required materials for her classes without using her living expense money.
New Laptop & Software	The PASS funds a professional-grade computer and the design software she needs for her coursework and future job.¹⁷
Transportation to Campus	Her bus pass is covered, ensuring she can get to every class.

Because the SSA no longer counts her earnings, Maria’s monthly SSI check increases to the full amount. This allows her to pay her rent and buy groceries while her work income is invested entirely in her education.

Scenario 2: The SSDI Recipient

David receives an SSDI check of $1,220 per month. This amount is too high for him to qualify for SSI, which in his state would also give him access to Medicaid. David wants to become a certified welder, which requires a six-month vocational training course that costs $4,000.

David’s PASS plan work goal is “to become a certified welder.” He proposes to set aside $1,200 of his SSDI check each month to pay for the course and the tools he will need.

David’s Action	Financial Consequence
Sets aside $1,200 of his $1,220 SSDI check for his PASS.	His “countable income” for SSI purposes drops to just $20.¹⁸
Applies for SSI.	Because his countable income is now below the limit, he is approved for SSI.
Receives a monthly SSI check.	He now has a monthly SSI payment to use for his living expenses like food and rent.¹⁰
Uses PASS funds for his goal.	He uses the set-aside SSDI money to pay for his welding course and purchase his own professional welding equipment.³

The PASS plan makes David eligible for SSI, giving him a second source of income for living expenses. It turns his SSDI check from a barrier into a funding source for his new career.

Scenario 3: The Entrepreneur

Susan has a passion for baking and wants to start her own small business selling custom cakes from a licensed home kitchen. She receives SSI and has saved $5,000, which is $3,000 over the SSI resource limit of $2,000.¹⁹ This excess savings is preventing her from continuing to receive SSI.

Susan’s work goal is “to own and operate a licensed home-based cake decorating business.” She submits a PASS application along with a detailed business plan.¹⁸ The plan proposes to use her $5,000 in savings to pay for start-up costs.

Business Startup Step	How PASS Makes It Possible
Set aside $5,000 in savings.	The SSA excludes the $5,000 from her resources. Her countable resources drop to $0, and she immediately regains her SSI eligibility.²⁰
Pay for business licenses and permits.	She uses the PASS funds to pay all required state and local fees to legally operate her business.
Purchase a commercial-grade mixer and oven.	The PASS covers the cost of essential baking equipment she needs to produce high-quality cakes.²¹
Buy initial inventory of baking supplies.	She uses the funds to purchase flour, sugar, decorating tools, and packaging materials to start her business.²¹

This type of plan is called a “resource PASS.” It allows Susan to invest her savings in her business without losing her vital SSI benefits for daily living expenses.

Your Step-by-Step Guide to Form SSA-545-BK

The official application for a PASS is Form SSA-545-BK, “Plan to Achieve Self-Support.” While it may look long, the form is a logical guide that helps you build a strong case. Thinking through each question carefully is the key to getting your plan approved.²²

Part A: Your Work Goal

This is where you state your mission.

A.1. What is your work goal? Be extremely specific. “Computer work” will be denied. “Certified IT Support Technician” is a clear, approvable goal.²²
A.2. Will you be self-employed? If you check “Yes,” you must attach a detailed business plan. This is not optional.²³
A.5. Describe the duties… Research the job. List the actual tasks you will perform, showing the SSA you understand the role.²²
A.8. How much money do you expect to earn? Your expected earnings must be high enough to significantly reduce or eliminate your need for benefits. For SSDI recipients, this generally means earning above the Substantial Gainful Activity (SGA) level ($1,620 per month in 2025).⁸
A.10. Why weren’t you able to become self-supporting? If you had a previous PASS that failed, be honest. Explain what you learned and why this new plan is more realistic. This shows maturity and good planning.¹²

Part B: Your Background

This section provides the evidence that your goal is feasible.

B.1 & B.2. List all your disabling conditions… and limitations… Be honest about your medical conditions and how they limit you.²²
B.3. How will you address the listed limitation(s)? This is a critical question. It is your chance to show the PASS Specialist you are a problem-solver. For example: “My back condition prevents me from lifting more than 15 pounds, so my business plan for a bookstore includes a rolling cart and hiring help for stock deliveries.”
B.4 – B.7. List jobs… school completed… special training… This information helps the SSA see the foundation you are building on. If you have a degree in art history and your goal is to be a welder, you need to explain that choice and the training you will get to make it happen.²²

Part C: Your Plan

This is your timeline. You must break down your large goal into small, manageable steps with start and end dates.²²

For Education: List each semester, the number of credits you will take, and your expected graduation date.
For Self-Employment: List every step from writing the business plan and securing licenses to purchasing equipment and opening for business.
For a Job Search: Include steps like “take certification exam,” “update resume,” “start applying for jobs,” and “expected date of employment.”

This section proves your plan is viable and not just a wish. It is a project plan for your career.

Part D: Your Expenses

This is your budget. You must list every single item or service you will pay for with PASS funds.²²

Item/service/training: Be specific. Instead of “school supplies,” list “textbooks,” “notebooks,” and “graphing calculator.”
Total Cost: You must provide realistic cost estimates. For large purchases, it is a good idea to get written quotes from vendors to include with your application.⁷
How will these items… help you reach your work goal? You must justify every expense. For example: “This specific laptop is required because it is the only model that can run the computer-aided design (CAD) software necessary for my engineering courses.”

Part E: Funding Your PASS Plan

This section shows where the money for your plan will come from.

E.2. How do you plan to keep the money set aside… separate? The only correct answer is a separate bank account. The SSA requires this to track your funds and ensure they are used correctly.¹⁴
E.3. List the income you currently receive… List all sources of income you have other than SSI. This includes wages, SSDI, or money from family.²²
E.4. How much of this income… will you set aside? This is the amount you will deposit into your separate PASS bank account each month to pay for the expenses you listed in Part D.²²

Building Your A-Team: Experts Who Can Help for Free

You do not have to create a PASS plan alone. The SSA provides a network of experts who can help you develop a strong plan and navigate the process. Working with a professional greatly increases your chances of getting approved.⁷

PASS Cadre (PASS Specialists): These are SSA employees who are experts in the PASS program. They are responsible for reviewing, approving, and monitoring all PASS plans.²⁵ A PASS Specialist will be your main point of contact at the SSA. They can help you refine your plan to make it approvable.²⁶ You can find the contact information for your regional PASS Cadre on the SSA’s website or by calling the main SSA number.⁴
Vocational Rehabilitation (VR) Counselors: Every state has a VR agency that helps people with disabilities prepare for and find work.²⁸ A VR counselor can help you explore career goals, get assessments, and develop an Individualized Plan for Employment (IPE). An IPE from a VR counselor can be a powerful supporting document for your PASS application.²⁹
WIPA Benefits Planners: Work Incentives Planning and Assistance (WIPA) projects are funded by the SSA to provide free, in-depth benefits counseling.³⁰ A WIPA benefits planner is one of the most valuable members of your team. They can give you a written analysis showing exactly how work will affect all of your benefits—not just SSI, but also Medicaid, housing assistance, and food stamps—and can provide direct help in writing your PASS plan.³¹

Do’s and Don’ts of Managing Your Approved PASS

Getting your PASS approved is just the first step. You are now the manager of your own career project. Following these rules is essential for success.

Do’s	Don’ts
Open a separate checking account immediately. This is the most important rule. All PASS funds must be kept separate from your personal money.³²	Never mix your PASS funds with personal money. Co-mingling funds is a serious violation and can lead to termination of your plan.¹⁴
Keep every single receipt. You must have proof for every dollar you spend from your PASS account. Store them in a binder or folder.³²	Do not pay for anything in cash if you can avoid it. Cash leaves no paper trail. Use a check or debit card tied to your PASS account.³²
Communicate with your PASS Specialist proactively. If you need to make a change or think you will miss a deadline, call them before it happens.³²	Never buy an item that is not on your approved expense list. If you need something new, you must get written approval from your PASS Specialist first.³³
Track your milestones. Know your plan’s deadlines and work to meet them. This shows the SSA you are making progress.³²	Don’t forget to report changes to both the PASS Cadre and your local SSA office. A change in your address or income must be reported to both offices.³³
Keep excellent records. Store your bank statements, receipts, and all letters from the SSA in one safe place.³²	Don’t ask for forgiveness instead of permission. Making an unapproved change and hoping it will be okay later is a recipe for failure.³²

Pros and Cons of Using a PASS Plan

A PASS plan is a powerful tool, but it requires commitment and organization. Understanding the advantages and disadvantages can help you decide if it is the right choice for you.

Pros	Cons
Allows you to save money without penalty. You can build savings for your goal without your SSI check being reduced or stopped.	Requires meticulous record-keeping. You must keep receipts for every expense and maintain a separate bank account, which can be a lot of work.³²
Can increase your monthly income. By excluding other income, your SSI payment can increase, giving you more money for living expenses.⁴	Your plan is a contract with the SSA. You cannot make changes without getting prior approval from your PASS Specialist for everything.³²
Can make you eligible for SSI and Medicaid. For SSDI recipients, a PASS can be the key to unlocking SSI eligibility and the valuable health insurance that comes with it.¹⁰	The plan must be followed. You are accountable for meeting the milestones and deadlines you set in your application.³²
Funds a wide range of career expenses. A PASS can pay for education, tools, business equipment, transportation, childcare, and more.⁵	Misusing funds has serious consequences. Spending PASS money on unapproved items can lead to plan termination and having to pay the money back.³²
You are in control of your career path. You choose your own goal and the steps to get there, empowering you to direct your own future.⁸	Success is not guaranteed. Even with a great plan, you might not achieve your work goal, though you won’t be penalized if you made a good-faith effort.⁸

Top 7 Mistakes to Avoid with Your PASS Plan

Many PASS plans are denied or terminated because of simple, preventable mistakes. Being aware of these common pitfalls is the first step to avoiding them.

Making Purchases Before Approval. Never spend money on a planned expense before you have an official, written approval letter from the SSA. There is no guarantee your plan will be approved, and the SSA will not retroactively cover purchases you made in anticipation.³³
Not Keeping PASS Funds Separate. This is the single biggest mistake. You must open a separate bank account for your PASS funds. Mixing this money with your personal funds can lead to your plan being terminated and an overpayment you have to pay back.³²
Submitting an Incomplete Application. A vague or incomplete application will cause delays and will likely be denied. Fill out every single part of the form with as much detail as possible. If a question doesn’t apply, write “N/A”.³³
Having a Vague Work Goal. “I want to work with animals” will be denied. “I will become a certified veterinary technician” is a specific goal that can be approved. Your goal must be a real job title.¹³
Poor Communication with Your PASS Specialist. Your PASS Specialist is your partner, not your adversary. Failing to respond to their requests or not telling them about changes in advance can cause your plan to be suspended.³²
Bad Record-Keeping. You are responsible for proving how you spent your PASS funds. If you do not keep receipts and bank statements, the SSA may decide you misused the money. This is the most common source of problems for PASS participants.³²
Reporting Changes to Only One Office. The PASS Cadre and your local SSA field office are separate. You must report changes in your income, resources, or living situation to both offices to ensure all your records are correct.³³

Frequently Asked Questions (FAQs)

Can I use a PASS to buy a car?

Yes, but it is difficult. You must prove a vehicle is essential to your work goal and that cheaper options like public transportation are not available or sufficient. The cost must also be reasonable.35

Will a PASS affect my Section 8 housing or food stamps?

No. The money you set aside in an approved PASS is not counted as income or a resource for most other federal needs-based programs, including Section 8 and SNAP (food stamps).37

What if I try my best but don’t reach my goal?

No, you will not be penalized. As long as you followed your plan, spent the money correctly, and kept good records, there is no penalty for not achieving the final work goal. The SSA recognizes that not every attempt succeeds.8

Can I have a PASS plan and an ABLE account?

Yes. They work well together. You can use a PASS to become eligible for SSI and fund specific business or education goals, while using an ABLE account for savings and other qualified disability expenses.39

Do I have to work while I have a PASS?

It depends. If you are on SSDI and using that to fund your PASS, you are generally not required to work. If you are on SSI and your only funding source is wages, you must work to fund the plan.15

What happens if my PASS is denied?

You can appeal. The first step is “Reconsideration,” where a different PASS Specialist reviews your case. If that is denied, you can request a hearing before an Administrative Law Judge. Many initial denials are later approved on appeal.26

How long can a PASS plan last?

It varies. Plans for education can last four years or more, while plans for self-employment are often limited to around 18 months. The timeline must be reasonable for the specific goal you have set.40