Sponsors (2)
Official title: Amend the Internal Revenue Code of 1986 to allow additional catch-up contributions for certain family caregivers.
Introduced April 14, 2026 by Susan Margaret Collins · Last progress April 14, 2026
The bill helps unpaid family caregivers rebuild retirement savings and obtain tax relief with clearer eligibility rules and reduced paperwork, but the five‑year/<500‑hour limits, delayed start, compliance risks from self-certification, and increased federal tax costs mean many caregivers may still be excluded and taxpayers bear fiscal and compliance trade-offs.
Unpaid family caregivers (e.g., parents, middle-class families) can make larger 'catch-up' retirement contributions for up to five years, increasing their ability to rebuild retirement savings after reducing paid work.
Unpaid caregivers who reduce paid work can access an increased IRA deduction, lowering taxable income and improving near-term financial relief for lower-income caregivers.
Plans may allow participant self-certification and the bill defines caregiving and caregiving hours, reducing administrative burden and creating clearer, standardized eligibility for caregivers to claim relief.
Limiting eligibility to at most five years and requiring under 500 paid hours can exclude long-term or simultaneously employed caregivers who still face retirement setbacks, leaving many caregivers without relief.
Expanding catch-up eligibility increases tax expenditures and could raise long-term federal revenue losses, spreading fiscal costs across taxpayers.
Allowing participant self-certification risks improper claims, increasing compliance and audit exposure for employer plans and taxpayers.
Based on analysis of 2 sections of legislative text.
Creates a new qualified family caregiver category allowing certain unpaid caregivers to make additional retirement catch-up contributions for up to five years.
Allows certain unpaid family caregivers who provide substantial caregiving hours and have low paid-work hours in a year to make an extra “catch-up” retirement contribution for up to five years. It creates a new qualified family caregiver category in the Internal Revenue Code, defines who counts as a family caregiver and caregiving hours, permits a plan to rely on participant self-certification, and applies the same dollar limits used for participants aged 60–63. Changes apply to taxable years beginning after December 31, 2026.