Learn About PASS Plans for SSDI Income

Understanding PASS Plans and How They Work

A PASS plan stands for "Plan to Achieve Self-Support." It is a work incentive program designed by the Social Security Administration (SSA) to help people receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) pursue work and self-sufficiency goals. The basic idea behind a PASS plan is straightforward: it allows you to set aside income and resources for a specific period to work toward becoming self-supporting.

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When you have a PASS plan in place, the SSA does not count certain income and resources toward the limits that would normally reduce your benefits. Typically, SSI has strict resource limits—$2,000 for individuals and $3,000 for couples (as of 2024)—and income limits that affect your monthly payment. Without a PASS plan, earning money or saving resources can quickly push you over these limits and cause your benefits to decrease or stop entirely. A PASS plan creates an exception to these rules for a defined period, usually between 12 and 60 months.

The income and resources you set aside under a PASS plan must be used only for goals that will help you achieve work and self-sufficiency. These goals might include obtaining education or training, starting a business, purchasing equipment or tools needed for work, or paying for transportation to a job. The plan must be written down, approved by the SSA, and regularly reviewed to make sure you are following it correctly.

According to SSA data, PASS plans have been used by thousands of beneficiaries since the program began in 1981. While exact current figures vary, the program remains an important tool for people who want to work toward independence while maintaining their benefits during a transition period. Understanding how a PASS plan functions is the first step toward exploring whether it might support your own work and independence goals.

Practical Takeaway: A PASS plan is a written agreement with the SSA that lets you set aside income and resources for work-related goals without losing your SSI or SSDI benefits. This tool exists specifically to help you move toward financial independence.

Who Can Use a PASS Plan

PASS plans are available to people who receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). However, there are some specific circumstances under which a PASS plan is most useful and appropriate. Understanding whether a PASS plan might fit your situation requires looking at your current benefit status and your work goals.

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If you receive SSI, you are subject to strict income and resource limits. Any income over approximately $65 per month (in 2024) and resources over $2,000 can reduce or eliminate your benefits. If you want to work or save money for a work-related goal, a PASS plan allows you to do both without triggering those reductions. This makes PASS particularly valuable for SSI recipients who have concrete plans to work.

SSDI recipients may also benefit from a PASS plan, although they face different income rules than SSI recipients. SSDI has a "substantial gainful activity" (SGA) threshold—currently $1,470 per month in 2024—above which the SSA may determine you are no longer disabled. A PASS plan can help SSDI recipients work toward self-sufficiency while their earnings are excluded from SGA calculations, buying them time to build their work capacity.

For either SSI or SSDI recipients, a PASS plan works best when you have a clear, specific work goal and a realistic plan for achieving it. The SSA wants to see that you have thought through your goal, understand the steps needed to reach it, and have estimated costs and timelines. Vague goals like "someday I want to work" are not strong foundations for a PASS plan, but goals like "obtain my GED within 18 months" or "complete a medical coding certificate program in 24 months" are.

You do not need to have already started working or training to pursue a PASS plan. You can propose one before you begin your program or job. However, you do need to show that your goal is realistic given your current situation and abilities. The SSA reviews PASS plans carefully to ensure they represent genuine steps toward self-support, not just a way to save money indefinitely.

Practical Takeaway: If you receive SSI or SSDI and have a specific work or training goal you want to pursue, you may be able to use a PASS plan to set aside income and resources without losing your benefits while you work toward that goal.

What Counts as a PASS Plan Goal

A PASS plan goal must be related to achieving work and self-sufficiency. The SSA has broad guidelines about what counts as an appropriate goal, and there is considerable flexibility in what you can include. However, your goal must move you toward the ability to support yourself through work, not toward other outcomes like homeownership or general savings.

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Common PASS plan goals include obtaining education or vocational training. For example, you might propose a PASS plan to pursue a certificate program in welding, dental assisting, truck driving, or information technology. The program costs, tuition, books, and supplies can all be included as PASS plan expenses. Another common goal is starting a business. If you want to open a small business—whether a home-based consulting firm, a cleaning service, an online store, or a landscaping company—a PASS plan can help you save and set aside the money needed for startup costs, licensing, equipment, and initial operating expenses.

PASS plans can also support goals related to transitioning to different work. For example, if you currently work part-time and want to transition to full-time work in a different field, a PASS plan might help you cover training costs or transportation expenses during the transition period. Similarly, if you need specialized equipment or assistive technology to work—such as a wheelchair-accessible vehicle, specialized computer software, or mobility equipment—a PASS plan can help you acquire it.

The following are examples of goals that have been successfully included in PASS plans:

• Obtaining a high school diploma or GED
• Completing a college degree or associate degree
• Obtaining a professional license or credential (nursing license, real estate license, contractor license)
• Completing a vocational or technical training program
• Purchasing tools or equipment needed for self-employment
• Obtaining a reliable vehicle for work transportation
• Starting and establishing a business
• Paying for childcare to allow you to work
• Obtaining job coaching or employment services

Your PASS plan goal should have a clear endpoint and timeline. Rather than stating "become more independent," you would state "complete an Associate Degree in Accounting within 24 months" or "establish a part-time bookkeeping business generating $500 monthly income within 18 months." This specificity helps the SSA understand your plan and makes it easier to track your progress.

Practical Takeaway: Your PASS plan goal should be a specific, work-related objective with a timeline and clear steps. Education, training, business startup costs, and work-related equipment are all common and appropriate PASS plan goals.

What Expenses Can Be Included in a PASS Plan

Once you have identified a work-related goal for your PASS plan, the next step is to identify and document the expenses associated with reaching that goal. These are the costs that you will set aside using your PASS plan, which means they will not count against your income and resource limits. Understanding what expenses can be included helps you develop a realistic and comprehensive PASS plan.

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Direct educational and training expenses are primary candidates for PASS plan funding. These include tuition, registration fees, course fees, and tuition for classes at community colleges, universities, or accredited vocational programs. Books, required materials, software, and supplies needed for your training program can also be included. If your training program requires uniforms, safety equipment, or specialized clothing, these costs may be included as well. For example, if you are training to be a nurse and need to purchase scrubs, shoes, and a stethoscope, these would be legitimate PASS plan expenses.

Transportation costs are frequently included in PASS plans. This can mean the cost of a vehicle purchase, auto loan payments, insurance, maintenance, repairs, and fuel needed to get to school or work. If you use public transportation, the