Two new bills, the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act, would give caregivers more flexibility to boost their retirement savings through Roth IRAs and catch-up contributions.
The bills, introduced by Sens. Susan Collins, R-Maine, and Mark Warner, D-Va., "would help address the financial challenges faced by individuals who leave the workforce to care for loved ones, often sacrificing their own long-term financial security," the lawmakers said in a statement.
Companion bills were introduced in the House by Reps. Maria Elvira Salazar, R-Fla., and Brittany Pettersen, D-Colo.
The Improving Retirement Security for Family Caregivers Act would allow qualified family caregivers — family members engaged in caregiving for at least 500 hours and in paid employment for less than 500 hours in a year — to contribute to a Roth IRA even if they earn no income.
"Current law caps Roth IRA contributions at the lower of $7,000 or yearly income, limiting caregivers' ability to save for retirement when their earnings are reduced due to caregiving responsibilities," the senators said. "By eliminating this yearly income cap for family caregivers, the bill would help ensure they can continue to save up to $7,000 for retirement even if their wages fall beneath that amount while caring for a loved one."
The Catching Up Family Caregivers Act would allow full-time family caregivers to qualify for up to five additional years of maximum catch-up contributions, which can be made to any plan that allows them, including both IRAs and 401(k)s.
"Catch-up contributions currently allow individuals over age 50 to contribute above the standard annual limit, with even higher limits available for those ages 60 to 63," the senators said.
The catch-up contribution limits would be for the amount the IRS allows for that taxable year for ages 60 to 63. In 2025, the catch-up limit for that age group was $11,250 for 401(k)s and similar plans. For SIMPLE IRAs, the catch-up limit for those aged 60-63 was $5,250 in 2025.
The contributions are designed to be made after the caregiver has returned to the workforce via a lookback provision.
"Family caregivers provide critical support to their loved ones, yet many are forced to step away from work, limiting their ability to take full advantage of retirement savings opportunities," Collins said in the statement. "These two bipartisan bills would give these individuals a better opportunity to build a secure financial future and help ensure they are not penalized for the vital care they provide."
Both bills are endorsed by the Securities Industry and Financial Markets Association, the American Benefits Council, the Edward Jones Grassroots Task Force, the Insured Retirement Institute and the Women's Institute for a Secure Retirement (WISER). The Catching Up Family Caregivers Act is also endorsed by the Alzheimer's Association.
"The challenge of leaving the workforce to care for a family member has a disproportionate impact on women," Paul Richman, IRI's chief government and political affairs officer, said in a letter supporting the bills.
Women represent 58% of the 40.4 million Americans providing full-time care to a family member, he noted, citing the Bureau of Labor Statistics.
Ken Bentsen, SIFMA's president and CEO, added in a statement that the "bicameral pieces of legislation recognize that one of the best ways to ensure a secure retirement is by saving early in tax-advantaged retirement accounts, but retirement planning is often impacted by life circumstances and nonfinancial priorities, including time spent caregiving."
The bills "would allow individuals who leave the workforce or significantly reduce their hours to care for a family member to benefit from the power of long-term saving and compounding growth for their retirement," Bentsen said.
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