“To amend the Internal Revenue Code of 1986 to allow additional catch-up contributions for certain family caregivers.”
No CRS summary available for this bill.
This section expands eligibility for catch-up contributions in employer-sponsored retirement plans to qualified family caregivers, treating them for dollar limit purposes the same as participants ages 60-63 (i.e., $10,000 annually, indexed for inflation after 2025). (As background, catch-up contributions allow participants age 50 or older to exceed standard annual contribution limits, with enhanced limits of $10,000 for ages 60-63 and $15,000 indexed for age 64+ under SECURE 2.0.) It similarly permits catch-up contributions to IRAs for qualified family caregivers (parallel to those age 50+). A qualified family caregiver is an unpaid family member, foster parent, or other unpaid adult who is unemployed or severely underemployed, has provided 500 or more hours of in-home caregiving (e.g., assistance with bathing, medications, or transportation) to a child or adult with special needs (including elderly due to age-related conditions) in the taxable year or a prior year, and worked fewer than 500 paid hours that year—limited to 5 total years lifetime (or 1 year per qualifying year, if fewer); plans may rely on self-certification. The changes apply to taxable years beginning after December 31, 2026.