Improving Retirement Security for Family Caregivers Act of 2026
- Bill Number
- H.R. 8274
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-04-14: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-25T08:07:25Z
AI-Generated Summary
Summary of H.R. 8274
Purpose
This legislation aims to improve retirement security for certain family caregivers by amending the Internal Revenue Code to permit them to make contributions to a Roth IRA, even if their paid employment hours are limited.
Key Provisions
- Definition of qualified family caregiver: An individual qualifies if they complete at least 500 hours of family caregiving during the taxable year and fewer than 500 hours of paid employment (including self-employment).
- Family caregiver activities: Includes unpaid care provided by a family member, foster parent, or other unpaid adult who is unemployed or severely underemployed, for a child or an adult with a special need (including elderly adults requiring care due to age-related conditions).
- Caregiving tasks counted: Hours spent on assistance with bathing, grooming, dressing, laundry, food shopping or preparation, housekeeping, managing medications, transportation, and mobility assistance.
- Contribution allowance: Qualified individuals may contribute to a Roth IRA up to the full annual limit under section 219(b)(1)(A), overriding the standard earned income limitation.
- Spousal IRA coordination: The rule applies even in cases where spousal IRA provisions under section 219(c)(1) are relevant.
- Effective date: Applies to taxable years beginning after December 31, 2026.
Significant Changes to Existing Law
- The bill creates a new exception in section 408A(c) of the Internal Revenue Code, allowing Roth IRA contributions based on caregiving hours rather than solely on taxable compensation.
- This modifies the general rule in section 219 that limits IRA contributions to the amount of earned income, providing a special rule exclusively for this group of caregivers.
Potential Impacts
- On citizens: Enables eligible family caregivers to build retirement savings through Roth IRAs, potentially benefiting those who provide unpaid care and have limited paid work.
- On government agencies: The Internal Revenue Service would administer the new contribution rules, including verification of caregiving hours and eligibility.
- On international relations: No direct impacts are outlined in the legislation.
Main Stakeholders Affected
- Family caregivers meeting the hour and eligibility criteria.
- Individuals receiving care, such as children or adults with special needs (including elderly adults).
- Families relying on unpaid caregiving arrangements.
- The Internal Revenue Service for tax administration and compliance.
Notable Legal, Constitutional, or Political Implications
- The measure operates within Congress's authority to set tax policy under the Internal Revenue Code, with no apparent constitutional conflicts.
- It introduces a targeted tax benefit without altering broader retirement account rules or affecting other taxpayer groups.
- The bill was introduced on a bipartisan basis in the House and referred to the Committee on Ways and Means.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Pettersen, Brittany [D-CO-7]
Cosponsors (2)
Rep. Salazar, Maria Elvira [R-FL-27], Rep. Neguse, Joe [D-CO-2]
Recent Actions
- 2026-04-14: Referred to the House Committee on Ways and Means.
- 2026-04-14: Introduced in House
- 2026-04-14: Introduced in House
Bill Versions
- Improving Retirement Security for Family Caregivers Act of 2026 — issued 2026-04-14 — PDF (4 pages)