arrow_back Back to App

Increased Retirement Savings for Unpaid Family Caregivers (Roth IRA)

This bill aims to improve retirement security for individuals who serve as unpaid family caregivers and consequently have limited earning capacity. It introduces a special rule allowing these caregivers to contribute to a Roth IRA, even if their earned income is very low or zero. This change applies to individuals who dedicate at least 500 hours annually to caregiving for a child or an adult with special needs, while working fewer than 500 paid hours per year.
Key points
The new rule allows qualified unpaid family caregivers to make contributions to a Roth IRA, which is crucial for building retirement savings.
Eligibility requires the caregiver to complete 500 or more hours of unpaid caregiving and fewer than 500 hours of paid employment during the taxable year.
The change applies to care provided to children or adults with special needs (including elderly adults) and takes effect for taxable years beginning after December 31, 2024.
Caregivers can contribute the full allowable annual amount to a Roth IRA, regardless of low earned income, enhancing their future financial security.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_5148
Sponsor: Sen. Collins, Susan M. [R-ME]
Process start date: 2024-09-24
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-flash-latest
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Improving Retirement Security for Family Caregivers Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5148.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-09-24.

What are the main provisions?

Key points include:

  • The new rule allows qualified unpaid family caregivers to make contributions to a Roth IRA, which is crucial for building retirement savings.
  • Eligibility requires the caregiver to complete 500 or more hours of unpaid caregiving and fewer than 500 hours of paid employment during the taxable year.
  • The change applies to care provided to children or adults with special needs (including elderly adults) and takes effect for taxable years beginning after December 31, 2024.
  • Caregivers can contribute the full allowable annual amount to a Roth IRA, regardless of low earned income, enhancing their future financial security.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Collins, Susan M. [R-ME].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Family Benefits