Sponsors (2)
The bill helps unpaid family caregivers build retirement savings by treating significant unpaid caregiving as qualifying compensation for Roth IRA contributions, at the cost of modest federal revenue loss and new verification and documentation burdens for agencies and caregivers.
Unpaid family caregivers (e.g., parents, low-income caregivers, those caring for people with disabilities) can make Roth IRA contributions up to the annual limit by treating 500+ hours of unpaid caregiving as qualifying compensation, increasing their ability to build retirement savings.
Caregivers in spousal IRA situations keep access to the caregiver-based contribution rule because the bill coordinates the new caregiver rule with existing spousal IRA provisions, avoiding unintended loss of eligibility.
Caregivers must document and substantiate 500+ unpaid caregiving hours (and related unemployment/underemployment), creating a compliance burden that could deter some low-income or time‑strained caregivers from claiming the benefit.
Expanding Roth contribution eligibility for unpaid caregivers will modestly reduce federal revenues (deferred/lost future tax receipts), slightly increasing budgetary costs or pressures on other programs.
The IRS and Treasury will face added administrative complexity and verification costs to determine caregiving hours and unemployment/underemployment status, increasing government compliance and implementation costs.
Based on analysis of 2 sections of legislative text.
Allows qualifying unpaid family caregivers to count as eligible to make Roth IRA contributions up to the standard annual limit when they meet hours and employment tests.
Official title: Amend the Internal Revenue Code of 1986 to allow certain family caregivers to contribute to a Roth IRA.
Introduced April 14, 2026 by Susan Margaret Collins · Last progress April 14, 2026
Allows unpaid family caregivers who meet specified hours and paid‑employment tests to treat themselves as eligible to make Roth IRA contributions up to the normal annual dollar limit. The change adds a new rule to the Internal Revenue Code permitting caregiving activity to generate IRA contribution eligibility and takes effect for taxable years beginning after December 31, 2025.