diff --git a/app/forms/verify_password_form.rb b/app/forms/verify_password_form.rb
index d894f187dc2..e7457a9a908 100644
--- a/app/forms/verify_password_form.rb
+++ b/app/forms/verify_password_form.rb
@@ -34,8 +34,7 @@ def valid_password?
 
   def reencrypt_pii
     personal_key = profile.encrypt_pii(decrypted_pii, password)
-    profile.update(deactivation_reason: nil, active: true)
-    profile.save!
+    profile.activate_after_password_reset
     personal_key
   end
 
diff --git a/app/models/profile.rb b/app/models/profile.rb
index 3c00b3ac313..d113a180ec1 100644
--- a/app/models/profile.rb
+++ b/app/models/profile.rb
@@ -92,6 +92,15 @@ def activate_after_passing_in_person
     activate
   end
 
+  def activate_after_password_reset
+    if password_reset?
+      update!(
+        deactivation_reason: nil,
+      )
+      activate
+    end
+  end
+
   def deactivate(reason)
     update!(active: false, deactivation_reason: reason)
   end
diff --git a/spec/models/profile_spec.rb b/spec/models/profile_spec.rb
index 39a1d7b51c6..17af2a7c199 100644
--- a/spec/models/profile_spec.rb
+++ b/spec/models/profile_spec.rb
@@ -319,6 +319,48 @@
     end
   end
 
+  describe '#activate_after_password_reset' do
+    it 'activates a profile after password reset' do
+      profile = create(
+        :profile,
+        user: user,
+        active: false,
+        deactivation_reason: :password_reset,
+      )
+
+      profile.activate_after_password_reset
+
+      expect(profile.active).to eq true
+      expect(profile.deactivation_reason).to eq nil
+    end
+
+    it 'does not activate a profile if it has a pending reason' do
+      profile = create(
+        :profile,
+        user: user,
+        active: false,
+        deactivation_reason: :password_reset,
+        fraud_review_pending_at: 1.day.ago,
+      )
+
+      expect { profile.activate_after_password_reset }.to raise_error
+    end
+
+    it 'does not activate a profile with non password_reset deactivation_reason' do
+      profile = create(
+        :profile,
+        user: user,
+        active: false,
+        deactivation_reason: :encryption_error,
+      )
+
+      profile.activate_after_password_reset
+
+      expect(profile.active).to eq false
+      expect(profile.deactivation_reason).to_not eq nil
+    end
+  end
+
   describe '#activate_after_passing_review' do
     it 'activates a profile if it passes fraud review' do
       profile = create(