How to Open an SSI Dedicated Account

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Dedicated accounts are used to cover expenses for disabled children and teenagers.
Dedicated accounts are used to cover expenses for disabled children and teenagers. (Image: Hemera Technologies/AbleStock.com/Getty Images)

Dedicated accounts are special bank accounts that are created specifically to receive lump-sum Supplemental Security Income, or SSI, payments for children under the age of 18. A dedicated account must be separate from the account where monthly SSI and disability payments are deposited, and it may only be a checking, savings or money market account. Once established, dedicated accounts can only be used to pay expenses relating to the child's disability, such as medical costs, job training and rehabilitation expenses. Other allowed expenses include the cost of household modifications and special equipment needed to help the child function at home.

Visit the bank of your choice and inform a teller or bank officer that you would like to open a dedicated account for a disabled child.

Present the child's disability award letter to the bank officer, as well as documentation proving that you're the child's representative payee if this documentation isn't included with the letter.

Fill out the application to open the account, providing the bank officer with your information and the child's information as needed. Make sure that the account is set up in the child's name and not your own: The Social Security Administration requires that the account be created so that all funds and interest legally belong to the child.

Contact the nearest Social Security field office and provide the office with the details of the dedicated account. The field office requires the name of the bank where the account was established, the account and routing numbers, and the name of the child to set up direct deposit into the dedicated account.

Check with the bank to confirm the deposit of the child's first lump-sum payment after you receive notification that the payment will be made. If the funds aren't present within the time frame mentioned in the notification letter, contact the field office to inquire about the status of the deposit.

Tips & Warnings

  • The Social Security Administration requires that the representative payee for a disabled child must submit a yearly report showing how the money in a dedicated account is used. Bank statements, receipts, a two-year expense record and explanations of all expenses paid using both the dedicated account and the child's monthly disability payments.

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