Proposals Expanding Contributions for Caregivers Introduced

Senator Susan Collins (R-ME) has introduced a pair of bills to help family caregivers better prepare for retirement. According to a press release, the Improving Retirement Security for Family Caregivers Act (S. 4292) would allow family caregivers to contribute to a Roth IRA even though they may not satisfy the earned income requirement in support of the contribution. A qualified family caregiver is someone who provides more than 500 hours of in-home care to a child or to an adult with a special need or age-related condition—and has completed fewer than 500 hours of paid employment. 

Senator Collins also introduced S. 4291, the Catching Up Family Caregivers Act, to allow family caregivers additional years of eligibility for the highest catch-up contribution levels in employer-sponsored retirement plans and IRAs. This bill would allow full-time family caregivers to qualify for up to five additional years of maximum catch-up contributions. Both bills have been referred to the Senate Finance Committee.