H.R. 8273: Catching Up Family Caregivers Act of 2026

The "Catching Up Family Caregivers Act of 2026" proposes changes to the Internal Revenue Code to assist family caregivers through additional financial contributions to retirement accounts. Here are the key features of the bill:

1. Additional Contributions for Family Caregivers

The bill allows individuals identified as qualified family caregivers to make extra contributions to their retirement plans, similar to the catch-up contributions that individuals over 50 can make. This aims to support those who may have reduced their paid work hours to provide family care.

2. Definition of Qualified Family Caregiver

A qualified family caregiver is defined as an individual who:

• Has completed at least 500 hours of caregiving during the taxable year or any previous year.
• Has worked fewer than 500 hours in paid employment during that same year.

3. Limitations on Status as a Caregiver

The bill sets a maximum period during which an individual can be classified as a qualified family caregiver:

• Only one taxable year for each year they meet the criteria outlined above.
• A maximum of five taxable years in total.

4. Definition of Family Caregiver

The term "family caregiver" covers unpaid family members, foster parents, or other unpaid adults who provide in-home care for:

• A child, or
• An adult with special needs (as legally defined), including elderly adults needing extra care.

5. Activities Counted as Caregiving

Hours spent in caregiver roles include, but are not limited to:

• Assisting with bathing or grooming.
• Dressing.
• Laundry.
• Food shopping and preparation.
• Housekeeping.
• Managing medications.
• Providing transportation and mobility assistance.

6. Self-Certification for Caregivers

Employers can accept a written statement from individuals claiming their status as qualified family caregivers for tax purposes.

7. Treatment of Caregivers in Retirement Accounts

Individuals recognized as qualified family caregivers will be treated in the same way as individuals aging into the catch-up contribution age of 60, allowing them to make additional contributions to their Individual Retirement Accounts (IRAs).

8. Effective Date

The changes in the bill would take effect for taxable years starting after December 31, 2026.

Relevant Companies

• UNH (UnitedHealth Group Incorporated): As a major provider of healthcare services, this company may see changes in demand for caregiving services as family caregivers are financially supported.
• HUM (Humana Inc.): Similar to UnitedHealth, Humana may experience an increase in individuals seeking their services as more people engage in caregiving roles.
• CVS (CVS Health Corporation): This pharmacy and healthcare company may see shifts in market strategies related to medication management for caregivers and their dependents.