Expanding Access to Retirement Savings for Caregivers Act

To amend the Internal Revenue Code of 1986 to reduce the age for making catch-up contributions to retirement accounts to take into account time out of the workforce to provide dependent care services. 1. Short title This Act may be cited as the Expanding Access to Retirement Savings for Caregivers Act 2. Reduction of age for making catch-up contributions for individuals out of workforce to provide dependent care services (a) Individual retirement plans Section 219(b)(5) (D) Reduction of age for making catch-up contributions for individuals out of workforce to provide dependent care services (i) In general In the case of an eligible individual, subparagraph (B)(i) shall be applied by substituting the applicable age with respect to such individual the age of 50 (ii) Applicable age For purposes of this subparagraph, the term applicable age (iii) Eligible individual For purposes of this subparagraph, the term eligible individual (iv) Qualified unemployment period For purposes of this subparagraph, the term qualified unemployment period (I) which is not less than 1 year, (II) which begins after such individual attains age 18, and (III) during which such individual has no earned income (as defined in section 32(c)(2)) on account of such individual’s provision of care to one or more qualifying individuals (as defined in section 21(b)(1)). (v) Declaration requirement A qualified unemployment period shall not be taken into account under this subparagraph with respect to any individual unless such individual has submitted to the Secretary a written declaration made under the penalties of perjury that such period meets the requirements of clause (iv) with respect to such individual. The trustee may rely on such declaration unless the trustee knows, or has reason to know, that such declaration is false. . (b) Elective deferrals Section 414(v) of such Code is amended by adding at the end the following new paragraph: (7) Reduction of age for making catch-up contributions for individuals out of workforce to provide dependent care services (A) In general In the case of an eligible participant, paragraph (5)(A) shall be applied by substituting the applicable age with respect to such participant age 50 (B) Application of definitions and rules For purposes of this paragraph, clauses (ii), (iii), (iv), and (v) of section 219(b)(5)(D) shall apply— (i) by substituting participant individual (ii) by substituting plan administrator trustee (C) Error correction The Secretary shall issue regulations or other guidance under which an applicable employer plan may correct for an impermissible catch-up contribution by providing for a distribution of such contribution together with any earnings properly attributable thereto. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Expanding Access to Retirement Savings for Caregivers Act This bill allows an individual to make annual catch up contributions to a retirement account before reaching age 50 if the individual leaves the workforce to provide dependent cares services. Specifically, the individual must have been unemployed, and have had no earned income, as a result of providing care to (1) a dependent under the age of 13, or (2) a spouse physically or mentally incapable of self-care.