“A bill to amend the Internal Revenue Code of 1986 to allow certain family caregivers to contribute to a Roth IRA.”
No CRS summary available for this bill.
This section establishes a special rule allowing a qualified family caregiver to make Roth IRA contributions up to the full dollar amount under section 219(b)(1)(A) of the Internal Revenue Code (i.e., the base annual limit, such as $7,000, subject to inflation adjustment) for the taxable year, notwithstanding the general compensation limitation of section 219(b)(5), for taxable years beginning after December 31, 2025. (Thus, unpaid caregivers with limited earned income may contribute the maximum nondeductible amount to a Roth IRA.) A qualified family caregiver is an individual who, during the taxable year, (1) completes 500 or more hours of specified caregiving tasks (e.g., assistance with bathing, medications, transportation) as an unpaid family member, foster parent, or other unpaid adult for a child or an adult with a special need (including an elderly adult due to age-related conditions), and (2) completes fewer than 500 hours of paid employment (including self-employment); the rule applies notwithstanding the spousal IRA coordination rule of section 219(c)(1).