Full question: I receive SSDI benefits since 2006 and I also just inherited a sum of money from a family trust. What do I need to do to protect my SSDI benefits and still invest the inheritance in a retirement fund like a Roth IRA?

Hi there,

Receiving an inheritance, such as a sum of money from a family trust, generally does not affect your Social Security Disability Insurance (SSDI) benefits, as SSDI is based on your work history and not on your current unearned income or assets. However, contributions to a Roth IRA account are limited to your earned income for the year. If you have earned income, it may affect your SSDI benefits. You may not invest your inheritance in a Roth IRA unless the inheritance came from an existing IRA that was designated to a trust.

It’s always a good idea to consult with a professional to ensure that you’re making the best financial decisions for your situation. A Registered Social Security Analyst (RSSA) can provide you with personalized advice and help you understand how to protect your benefits while investing for the future.

Find an RSSA here.

All the best,
Martha

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