Improving Retirement Security for Family Caregivers Act of 2024
This bill allows qualified family caregivers to contribute up to $7,000 (in 2025) to a Roth IRA (or up to $8,000 (in 2025) for individuals who are age 50 or older). A qualified family caregiver is an unemployed or severely underemployed adult who provides 500 hours or more during one tax year of in-home care, monitoring, management, supervision, or treatment of an adult with special needs or a child.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5148 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5148
To amend the Internal Revenue Code of 1986 to allow certain family
caregivers to contribute to a Roth IRA.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 24, 2024
Ms. Collins (for herself and Mr. Warner) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow certain family
caregivers to contribute to a Roth IRA.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Retirement Security for
Family Caregivers Act of 2024''.
SEC. 2. ROTH IRA CONTRIBUTIONS FOR CERTAIN FAMILY CAREGIVERS.
(a) In General.--Subsection (c) of section 408A of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(7) Special rule for roth ira contributions of qualified
family caregivers.--
``(A) In general.--In the case of an individual who
is a qualified family caregiver as of the close of the
taxable year, in applying section 219 for purposes of
paragraph (2), the limitation of paragraph (1) of
section 219(b) shall be equal to the dollar amount in
effect under section 219(b)(1)(A) for the taxable year.
``(B) Qualified family caregiver.--For purposes of
this paragraph--
``(i) In general.--The term `qualified
family caregiver' means an individual who,
during the taxable year--
``(I) has completed 500 or more
hours as a family caregiver, and
``(II) has completed fewer than 500
hours of paid employment (including
self-employment).
``(ii) Family caregiver.--The term `family
caregiver' means an unpaid family member, a
foster parent, or another unpaid adult, who is
unemployed or severely underemployed (as
determined by the Secretary) and who provides
in-home care, monitoring, management,
supervision, or treatment of--
``(I) a child, or
``(II) an adult with a special need
(as defined in section 2901 of the
Public Health Service Act), including
an elderly adult who requires care or
supervision due to an age-related
condition.
``(iii) Hours.--An individual shall be
treated as serving as a family caregiver during
the hours in which the individual is engaged in
caregiving tasks including assistance with
bathing or grooming, dressing, laundry, food
shopping or preparation, housekeeping, managing
medications, transportation, and mobility
assistance.
``(C) Coordination with spousal ira.--In the case
of an individual to whom section 219(c)(1) applies for
the taxable year, subparagraph (A) shall be applied
notwithstanding such section.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance. (text: CR S6371)
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