So, for visibility SSI is Supplemental Security Income . SSI provides monthly payments to people with disabilities and older adults who have little or no income or resources.
SSI is not considered earned income. Income that is not earned, such as Social Security benefits, pensions, and unemployment benefits, is considered unearned income. Earned income includes wages, salaries, tips, and other taxable employee pay. SSI is also not taxable.
So, a 401(k) is generally offered by an employer, so that would not be an option. A Traditional IRA or a Roth, requires taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self-employment, so again not an option.
I see no reason why you could not open a bank account and/or invest in equities, bonds, etc.
A trust account is a legal arrangement that allows a third party, the trustee, to manage assets for the benefit of another party, the beneficiary. The grantor or settlor is the person who creates the trust, so that is also an option.
With SSI being a main source of income, unless the investment gains and income are significant or you are filing a joint tax return, it is unlikely that there would be much income tax implications on the Federal level. This is due to the standard deduction and the fact that below $47,025 of table income long-term capital gains are taxed at 0%.
Thank you for the opportunity to answer your questions @Expression
All the best,
Marc T.
TurboTax Live Tax Expert
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