Sponsors (2)
The bill helps unpaid family caregivers build retirement savings by allowing larger Roth IRA contributions and clarifying who counts as a caregiver, while imposing modest federal revenue costs and added administrative complexity to determine eligibility.
Family caregivers who provide at least 500 unpaid hours can use the higher elective-deferral dollar limit to make larger Roth IRA contributions for the year, letting parents, other family caregivers, and people who reduced paid work build bigger retirement savings.
The bill defines 'caregiving' and enumerates common in‑home tasks, giving taxpayers clearer eligibility rules and reducing IRS uncertainty about who qualifies as a family caregiver.
Expanding tax-advantaged contribution limits for this targeted group will reduce federal revenue over time, representing a cost to taxpayers.
Eligibility depends on determinations by the Secretary (e.g., whether someone is 'severely underemployed'), which creates administrative burden, potential delays, and possible disputes for applicants.
Based on analysis of 2 sections of legislative text.
Allows qualifying unpaid family caregivers to use the full Roth IRA elective deferral limit if they meet caregiving- and paid-work-hour tests.
Amends the tax code to let certain unpaid family caregivers contribute to a Roth IRA using the full elective deferral limit if they meet caregiving and paid-work tests. To qualify, a caregiver must have done at least 500 hours of unpaid family caregiving in the year and worked fewer than 500 hours in paid employment; IRS/Treasury will set rules for who counts as a caregiver and for determining "severely underemployed." The change applies to taxable years starting after December 31, 2026.
Introduced April 14, 2026 by Brittany Pettersen · Last progress April 14, 2026