H.R. 8274: Improving Retirement Security for Family Caregivers Act of 2026

This bill, known as the Improving Retirement Security for Family Caregivers Act of 2026, proposes changes to the Internal Revenue Code to enhance retirement savings options for certain family caregivers. Here are the key aspects of the bill:

Roth IRA Contributions for Family Caregivers

The bill allows qualified family caregivers to contribute to a Roth IRA, a type of retirement account where funds can grow tax-free. Specifically, it introduces a new provision that adjusts how the contribution limits to these retirement accounts are applied for caregivers.

Definition of Qualified Family Caregiver

To be considered a qualified family caregiver under this bill, an individual must meet the following criteria:

• Complete at least 500 hours as an unpaid family caregiver during the taxable year.
• Complete fewer than 500 hours of paid employment (including self-employment) during the same period.

Who Counts as a Family Caregiver?

The term "family caregiver" encompasses:

• An unpaid family member
• A foster parent
• Another unpaid adult who is unemployed or significantly underemployed and provides in-home care.

The caregiving activities for which these individuals can be credited include tasks like:

• Assisting with bathing, grooming, and dressing
• Food preparation and housekeeping
• Managing medications and providing transportation
• Overall monitoring and supervision of the care recipient.

Contribution Limits

The bill ensures that for those who qualify, the limits on contributions to their Roth IRA will be equal to the amount specified in the tax code for the taxable year. This means that despite their situation as caregivers, they would still be able to save for retirement more effectively.

Effective Date

The changes proposed in this legislation would take effect for taxable years starting after December 31, 2026.

Relevant Companies

None found