Summary

Allows unpaid family caregivers who meet hour and employment tests to make larger retirement-plan and IRA catch-up contributions by treating them as if they were age 60–63 for catch-up dollar limits. Eligibility requires at least 500 hours of unpaid caregiving in a taxable year (or a prior year), fewer than 500 hours of paid employment that year, and a determination of unemployment or severe underemployment; the higher catch-up can be claimed for up to five taxable years total and plans may rely on written self-certification. Changes apply to taxable years beginning after December 31, 2026.

• Allows certain unpaid family caregivers to use a higher age-based catch-up contribution amount for retirement plans and IRAs (treated as age 60–63 for the dollar limit).
• Defines "qualified family caregiver" by unpaid caregiving hours (500+ in a year or a prior year), limited paid hours (<500), and unemployment or severe underemployment.
• Permits employer plans to rely on a participant's written self-certification to verify caregiver status.
• Limits eligibility to at most five taxable years total per individual.
• Applies to taxable years beginning after December 31, 2026.
• Amends Internal Revenue Code rules for catch-up contributions rather than creating new spending programs.
• Targets unpaid caregivers (including foster parents and other unpaid adults) who reduce paid work to provide care.
• Requires Treasury/IRS rulemaking or guidance to define severe underemployment and caregiving-hour counting.
• Potentially increases retirement savings capacity for caregivers who took time out of paid work.
• Imposes modest administrative changes for plan administrators to implement the new verification and contribution calculations.