Beneficiaries who rely on monthly checks from the Social Security Administration will get a 3.2% benefit increase now that the calendar has turned to 2024.
Those who receive Supplemental Security Income, or SSI, are first in line to receive those enhanced benefit checks.
About 7.5 million SSI recipients started receiving their first checks for 2024 on Dec. 29, according to the Social Security Administration.
More from Personal Finance:
This strategy can help you meet New Year's resolution goals
Student loan borrowers won't face missed payments penalties
Will there be a recession in 2024? Here's what experts say
SSI benefits are typically paid on the first of the month unless that date falls on a holiday or on a weekend.
SSI beneficiaries who also receive Social Security benefits generally receive their Social Security payments on the third of the month.
With the 3.2% cost-of-living adjustment, the standard SSI payment for individuals increases to $943 per month, up from $914 per month in 2023.
For couples on SSI, the standard payment rises to $1,415 per month, up from $1,371 per month in 2023.
What to watch for with 'two check' months
SSI recipients must comply with strict rules. Individuals have a $2,000 limit on resources they may own such as property, stocks, bonds or bank accounts. For couples, the limit is $3,000.
These thresholds have not changed since 1989.
When two benefit checks are distributed in one calendar month, it can put beneficiaries "dangerously close" to the $2,000 asset limit, especially with standard payments of $943 per month in 2024, according to Kate Vengraitis, supervising attorney at the health and independence and SSI units at Community Legal Services of Philadelphia.
The firm provides free civil legal assistance to low-income Philadelphia residents.
Beneficiaries who still get paper checks are particularly at risk for this issue, she said, which can result in overpayment notices from the Social Security Administration and an automatic 10% withholding from benefit checks.
"There's not often a thorough investigation about why it happens," Vengraitis said.
"It can be hard to navigate that, especially without legal support," she said.
A bipartisan group of lawmakers is pushing for a bill that would raise the asset limits to $10,000 for individuals and $20,000 for married couples, up from $2,000 and $3,000, respectively.
Experts say the change would eliminate a marriage penalty SSI beneficiaries face, as well as other complications.
"We have employees who don't want us to increase their salary because if it goes over a certain amount, they can't get that benefit which they're entitled to," JPMorgan Chase CEO Jamie Dimon said during a recent Senate Banking Committee hearing.
"This definitely should be fixed," Dimon said.
Eligible SSI beneficiaries are currently allowed to hold $100,000 penalty-free in ABLE accounts, tax advantaged savings programs for people with disabilities.
Schedule of SSI payments for 2024
*Dec. 1, 2023, Dec. 29, 2023
Feb. 1, 2024
March 1
April 1
*May 1, 31
July 1
*Aug. 1, 30
Oct. 1
*Nov. 1, 29
Dec. 31
*Calendar months when two SSI checks are distributed.
**For beneficiaries who receive both SSI and Social Security, SSI is generally paid on the 1st of the month and Social Security is paid on the 3rd.
Don't miss these stories from CNBC PRO:
- These stocks will be the biggest S&P 500 winners of 2024, according to analysts
- Here's where to invest $50,000 in the new year, according to the pros
- Could a bitcoin ETF approval be a sell-the-news event? Here's what to expect if it happens
- These stocks will be the biggest Dow winners of 2024, according to analysts
- Oprah's flip on weight loss drugs is a sign of what's to come for the 'Ozempic trade' in 2024