Sponsors (4)
The bill helps recent family caregivers rebuild retirement savings by allowing larger IRA catch-up contributions with easier self-certification, but narrows eligibility for some long-term caregivers, raises risks of improper claims and compliance burdens, and modestly reduces federal revenue.
Family caregivers (parents and people who provided unpaid care) can make larger 'catch-up' IRA contributions and receive parity with older savers, increasing their retirement savings and access to tax-advantaged saving outside employer plans.
Allowing plans to rely on caregiver self-certification reduces administrative hurdles and speeds caregivers' access to catch-up benefits.
Caregivers who provided unpaid care for more than five taxable years or who had 500+ hours of paid work in a year are excluded, leaving many long-term or working caregivers ineligible and producing uneven benefits.
Permitting self-certification risks misuse and improper catch-up contributions, which could trigger compliance costs, plan-level disputes, and IRS audits affecting employer plans and taxpayers.
Higher tax-preferred contribution limits will modestly reduce federal tax revenue over time.
Based on analysis of 2 sections of legislative text.
Adds qualified family caregivers as an eligible class for higher catch-up retirement contributions to employer plans and IRAs, with a 500-hour threshold and up to a five-taxable-year lifetime limit.
Official title: To amend the Internal Revenue Code of 1986 to allow additional catch-up contributions for certain family caregivers.
Introduced April 14, 2026 by Brittany Pettersen · Last progress April 14, 2026
Allows certain family caregivers to make larger "catch-up" retirement contributions by adding a new eligible class to existing catch-up rules for employer plans and IRAs. It defines who qualifies (500+ hours caregiving in a year, limits on paid employment, permitted caregiving activities), limits the benefit to a specified number of taxable years per person, permits plan reliance on participant self-certification, and applies the higher dollar catch-up amount that currently applies to older savers; changes take effect for taxable years beginning after December 31, 2026.