“A bill 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 under employer-sponsored retirement plans for the increased catch-up contribution limit applicable to participants aged 60-63 (i.e., the greater of $10,000 or 150% of the standard catch-up amount, indexed for inflation, per SECURE 2.0) to include qualified family caregivers who are otherwise eligible participants (generally age 50+). It also allows qualified family caregivers to make catch-up contributions to IRAs regardless of age. A qualified family caregiver is an individual who (1) completes 500 or more hours of unpaid in-home caregiving (e.g., assistance with bathing, medications, or transportation) for a child or adult with special needs (including elderly due to age-related conditions) during the taxable year or any prior year and (2) completes fewer than 500 hours of paid employment that year, subject to a total limit of the lesser of five years or one year per qualifying year; plans may rely on self-certification. The changes apply to taxable years beginning after December 31, 2026.