Bill > S4291

This bill, titled the "Catching Up Family Caregivers Act of 2026," aims to amend the Internal Revenue Code of 1986 to allow certain family caregivers to make additional "catch-up" contributions to retirement accounts. Catch-up contributions are extra amounts individuals can save beyond the standard limits in retirement plans like 401(k)s and IRAs, typically available to those nearing retirement age. This bill introduces a new category of individuals eligible for these additional contributions: "qualified family caregivers." To be considered a qualified family caregiver, an individual must have spent at least 500 hours in a taxable year, or any previous year, providing unpaid care to a child or an adult with a special need, including an elderly person requiring care, while also working fewer paid hours than caregiving hours during that same year. The bill defines "family caregiver" as an unpaid family member, foster parent, or other unpaid adult who is unemployed or underemployed and provides in-home care, monitoring, management, supervision, or treatment. The provision limits the number of years an individual can be considered a qualified family caregiver to a maximum of five years, or one year for each year they met the criteria, whichever is less. For the purpose of retirement contributions, these qualified family caregivers will be treated similarly to individuals who are eligible for catch-up contributions because they are approaching age 60. This change is intended to provide financial support to those who dedicate significant time to unpaid caregiving, often at the expense of their own career and retirement savings, and will take effect for taxable years beginning after December 31, 2026.