Congress Introduces Bipartisan Bills to Enhance Retirement Savings for Caregivers
Congress has introduced two bipartisan bills aimed at improving retirement savings options for family caregivers. These bills propose easing Roth IRA contribution rules and allowing caregivers of any age to make catch-up contributions to workplace retirement plans like 401(k)s. Family caregivers, who often provide unpaid assistance to individuals with illness, disability, or age-related needs, frequently face financial strain due to reduced work hours or leaving their jobs. The Improving Retirement Security for Family Caregivers Act would enable qualifying caregivers to contribute up to the annual maximum allowed in a Roth IRA, even if their earned income is less. To qualify, caregivers must provide at least 500 hours of caregiving annually and have less than 500 hours of paid work. The U.S. population is aging, with the age 65-plus demographic reaching 61.2 million in 2024, highlighting the growing need for caregiving support. 
