Improving Retirement Security for Family Caregivers Act of 2024

Bill: 118-s-5148
Sponsor: full_name: Sen. Collins, Susan M. [R-ME]
Introduced: 2024-09-24
Policy area: Taxation
Latest action: action_date: 2024-09-24
text: Read twice and referred to the Committee on Finance. (text: CR S6371)

Summaries:
action_date: 2024-09-24
action_desc: Introduced in Senate
text: <p><strong>Improving Retirement Security for Family Caregivers Act of 2024</strong></p><p>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.</p>

tv_txt: II 118th CONGRESS 2d Session S. 5148 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.

1. Short title This Act may be cited as the Improving Retirement Security for Family Caregivers Act of 2024 . 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.