This bill amends the Internal Revenue Code to let certain unpaid family caregivers contribute to a Roth IRA. A "qualified family caregiver" is someone who during the tax year both: (1) completed 500 or more hours of unpaid caregiving, and (2) completed fewer than 500 hours of paid work (including self-employment). Eligible caregivers include unpaid family members, foster parents, or other unpaid adults who are unemployed or severely underemployed (as determined by the Secretary) and who provide in-home care, monitoring, management, supervision, or treatment to a child or to an adult with a special need (as defined in section 2901 of the Public Health Service Act), including an elderly adult needing care due to an age-related condition. The bill lists examples of caregiving tasks (bathing, dressing, laundry, shopping or preparing food, housekeeping, managing medications, transportation, mobility help). For these caregivers, the bill sets the Roth IRA contribution limit equal to the usual statutory dollar limit under section 219(b)(1)(A). The bill also says this rule applies even when the spousal IRA rule in section 219(c)(1) would otherwise apply. The change would apply to tax years beginning after December 31, 2026.
If you meet the bill's definition of a qualified family caregiver (including the hours and paid-work limits), the bill would allow you to contribute to a Roth IRA up to the normal annual dollar limit for the year, even though you have little or no paid employment. If you do not meet the caregiver definition, the bill makes no change to your Roth IRA rules.
No publicly available information on federal budget impacts, cost estimates, or revenue effects is included in the bill text or provided metadata.
No publicly available information in the bill text about proponents' stated reasons or arguments. Sponsors listed in the metadata are Representatives Brittany Pettersen, Maria Salazar, Joe Neguse, and Sharice Davids.
No publicly available information in the bill text or provided metadata about opponents' statements or objections.