If you’re a retired American and thinking about selling your house, there’s one big question you might have: Will I lose my Social Security benefits if I sell my home? The short answer is — no, you won’t. But there are some important details to understand depending on the type of benefits you receive.
Let’s break it down in simple terms.
Selling Your Home Doesn’t Affect Regular Social Security Retirement Benefits
According to the Social Security Administration (SSA), your Social Security retirement or survivor benefits are not affected by how much money you have or where it comes from. That means if you decide to sell your house and make a good profit, you will not lose your monthly Social Security check.
In fact, SSA clearly states that income from selling your house is not considered “earned income.” Therefore, it does not affect the earnings test, which is the rule that reduces benefits for individuals who retire early but continue working and earn above a certain threshold.
However, there is one thing to keep in mind: You might have to pay more tax. If your total income — including money made from the house sale — crosses certain thresholds, more of your Social Security benefits may become taxable at the federal or state level. But the benefits themselves won’t stop.
What About Social Security Disability Insurance (SSDI)?
Many people under the age of 65 also receive Social Security Disability Insurance (SSDI). These are people who can’t work due to a disability. Some people worry that selling their home may affect their SSDI benefits.
But just like retirement benefits, SSDI is also safe.
In a real-life example from the Maximise My Social Security website, a disabled man asked whether he would lose SSDI if he sold his house. Laurence Kotlikoff, an economics professor and expert on Social Security, replied that as long as you are receiving SSDI (not SSI), the home sale won’t impact your benefits.
No rule limits the amount of money or assets you can have while receiving SSDI. Even if you make a substantial profit from your home sale, your SSDI benefits will continue uninterrupted.
The Only Exception: SSI (Supplemental Security Income)
Now here’s the catch — if you’re getting SSI benefits, the rules are very different.
SSI is for people who are financially struggling, including low-income seniors and disabled individuals. It’s based on your income and assets, not your work history.
According to the SSA, you can lose your SSI benefits if selling your home pushes your total assets above a certain limit. Usually, if your total resources go over $2,000 for a single person, you could become ineligible for SSI (and Medicaid) for the months you’re above that limit.
But there is a little flexibility.
If you sell your home, you have up to three months to buy another one without losing your benefits. If, after the purchase, you still have less than $2,000 in your bank account, you’re fine.
If you don’t buy another house within three months, you’ll need to “spend down” the extra money within 12 months to reapply for SSI benefits. This means you will need to use that money for eligible expenses, such as housing, healthcare, or education.
Final Takeaway
So, can you lose your Social Security benefits after selling your home? It depends:
- If you’re receiving Social Security retirement or SSDI, you’re safe. Sell your home — no effect.
- If you’re receiving SSI, be careful. The money you make could put your benefits at risk if you don’t handle it within the time limits.
If you’re unsure about the type of Social Security you’re on, it’s best to consult a financial advisor or contact the SSA directly to obtain clarity based on your specific situation.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
