S5148-118

1. Short title This Act may be cited as the Improving Retirement Security for Family Caregivers Act of 2024.

2. Roth IRA contributions for certain family caregivers Subsection (c) of section 408A of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: In the case of an individual who is a qualified family caregiver as of the close of the taxable year, in applying section 219 for purposes of paragraph (2), the limitation of paragraph (1) of section 219(b) shall be equal to the dollar amount in effect under section 219(b)(1)(A) for the taxable year. For purposes of this paragraph— The term qualified family caregiver means an individual who, during the taxable year— has completed 500 or more hours as a family caregiver, and has completed fewer than 500 hours of paid employment (including self-employment). The term family caregiver means an unpaid family member, a foster parent, or another unpaid adult, who is unemployed or severely underemployed (as determined by the Secretary) and who provides in-home care, monitoring, management, supervision, or treatment of— a child, or an adult with a special need (as defined in section 2901 of the Public Health Service Act), including an elderly adult who requires care or supervision due to an age-related condition. An individual shall be treated as serving as a family caregiver during the hours in which the individual is engaged in caregiving tasks including assistance with bathing or grooming, dressing, laundry, food shopping or preparation, housekeeping, managing medications, transportation, and mobility assistance. In the case of an individual to whom section 219(c)(1) applies for the taxable year, subparagraph (A) shall be applied notwithstanding such section. The amendment made by this section shall apply to taxable years beginning after December 31, 2024. (7)Special rule for Roth IRA contributions of qualified family caregivers(A)In generalIn the case of an individual who is a qualified family caregiver as of the close of the taxable year, in applying section 219 for purposes of paragraph (2), the limitation of paragraph (1) of section 219(b) shall be equal to the dollar amount in effect under section 219(b)(1)(A) for the taxable year.(B)Qualified family caregiverFor purposes of this paragraph—(i)In generalThe term qualified family caregiver means an individual who, during the taxable year—(I)has completed 500 or more hours as a family caregiver, and(II)has completed fewer than 500 hours of paid employment (including self-employment).(ii)Family caregiverThe term family caregiver means an unpaid family member, a foster parent, or another unpaid adult, who is unemployed or severely underemployed (as determined by the Secretary) and who provides in-home care, monitoring, management, supervision, or treatment of—(I)a child, or (II)an adult with a special need (as defined in section 2901 of the Public Health Service Act), including an elderly adult who requires care or supervision due to an age-related condition.(iii)HoursAn individual shall be treated as serving as a family caregiver during the hours in which the individual is engaged in caregiving tasks including assistance with bathing or grooming, dressing, laundry, food shopping or preparation, housekeeping, managing medications, transportation, and mobility assistance.(C)Coordination with spousal IRAIn the case of an individual to whom section 219(c)(1) applies for the taxable year, subparagraph (A) shall be applied notwithstanding such section..