We have an elderly customer who is getting checks from an insurance settlement. She deposits a check about every two weeks and then immediately withdraws the funds. No problem until asked why the checks are coming in (because they were unusual for her account) and why the immediate withdrawal of the funds. Then her son, who was with her and also on the account, says she can't keep the funds in the account because it will mess up her Social Security. The mom is 58. Certainly the insurance company making payment to her will be reporting income over $600. Does SS have limits on deposits? Is this SAR reportable.

Could it be medicare which amounts varies by state?

It is noted that a person could give away funds in certain legal avenues (see an estate lawyer for details) and declare the transfers of the funds so they are not "hiding them".

The look back is 5 years so it would be difficult to hide it anyway.

OK found the SSI one

http://www.ssa.gov/ssi/text-resources-ussi.htm

Thank you Ed, but would I file a SAR?

Note to Biz: 58 is not exactly elderly.

Does the amount break the threshold?

Do you believe that they are hiding the money and not reporting it?

Devsfan-I know - I incorrectly linked elderly w/ SSI. I'm "elderly" myself.

edAudit - yes it has now as they continue and add up to more than the $5000. And the son told us he was hiding so . . . I guess I've answered my own question. I was hoping there was some way out of it because the insurance company will certainly be reporting the income.

Thanks all.

http://www.avvo.com/legal-answers/will-a-settlement-award-impact-social-security-dis-287779.html

it may not be reportable in the first place.

I would wait for others to chime in.