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A bipartisan effort is underway in Congress to help family caregivers save more for retirement.
Bills introduced in the House and Senate last week would ease Roth IRA contribution rules for caregivers. Another bill, also proposed in both chambers, would allow caregivers of any age to make “catch-up” contributions (additional amounts currently reserved for workers age 50 and older) into workplace retirement plans like 401(k)s. Family caregivers who support individuals with illness, disability, or age-related needs are typically unpaid and often have to reduce their hours or take time away from work altogether.
“These two bipartisan bills will help give these individuals a better chance to build a secure financial future and ensure they are not disadvantaged for the critical care they provide,” bill co-sponsor Sen. Susan Collins (R-Maine) said in a statement.
The House bill was referred to the Ways and Means Committee. The Senate bill was sent to the Finance Committee.
Family caregivers provide approximately $1 trillion in care.
The new proposal is part of an ongoing effort by some lawmakers and policymakers to address the financial burden that caregiving places on individuals, including their ability to save for retirement.
Family caregivers provided nearly $1 trillion in care in 2024, almost all of which was unpaid, according to a recent report from the AARP Public Policy Institute, a research and policy analysis firm. According to the 2021 AARP survey, 78% of caregivers report out-of-pocket costs related to caregiving, with an average annual expense of $7,242.
According to a 2025 joint report from AARP and the National Alliance for Caregiving, a nonprofit advocacy and research group focused on caregivers, three out of five caregivers are women, and the average age is 51.
Overall, women tend to save less for retirement. According to Vanguard’s 2025 “How America Saves” report, the average amount saved in a 401(k) across all ages is $126,971 for women and $171,859 for men.
“Caregivers need all the help they can get,” said Cindy Hounsell, founder and president of the Women’s Institute for a Secure Retirement, a nonprofit focused on women’s long-term financial security that supports the new Congressional bill.
“In many cases, they have to quit their jobs to care for their parents, children or in-laws,” she says. “So (these bills) are a good thing and a step in the right direction.”
The U.S. population is also aging, and more people generally need care. As people live longer and baby boomers reach retirement age in droves, the number of people 65 and older will reach 61.2 million in 2024, up 13% from 54.2 million in 2020, according to the Census Bureau. The United States is currently at “Peak 65,” with a record number of Americans reaching age 65 each year.
How each new bill works
Each new bill makes changes to retirement account contribution rules for caregivers.
The first measure, the Family Caregiver Retirement Security Improvement Act, would allow eligible caregivers to contribute up to the annual maximum amount allowed into a Roth Individual Retirement Account, even if they earned less in that year. To qualify, caregivers would need to provide at least 500 hours of care per year and perform fewer than 500 hours of paid work, according to the bill.
Under current law, contributions to an IRA in 2026 are limited to the lesser of $7,500 or your annual income.
Carers may already have access to similar benefits. If the caregiver is married and their spouse is working, a spousal IRA may be a way to save for retirement. This option allows the working spouse to contribute to an IRA on behalf of the non-working spouse as long as the couple files a joint tax return and has enough earned income to cover the contributions.
The new bill is “similar in spirit to a spousal IRA, but it’s broader and more flexible, especially for caregivers who don’t fit neatly into the existing rules,” said Paul Richman, government principal and political affairs director for the Insurance Retirement Association, a trade group that represents financial companies. The group supports the bill.
The second bill, the Family Caregiver Catch-Up Act, would allow individuals to make “catch-up” contributions at the highest rate currently available to eligible individuals. Under current law, the standard contribution limit for 401(k)s in 2026 is $24,500. However, if you’re 50 or older, you can contribute an additional $8,000 this year. If you’re between 60 and 63, that amount is $11,250.
This Congressional action would allow caregivers, regardless of age, to save up to the standard limit plus a maximum additional limit, currently $11,250, for an additional five years upon returning to work.
Other bills aimed at supporting caregivers are already being considered in Congress. The bipartisan Long-Term Care Credit Act, passed by both houses of Congress, would give working caregivers a $5,000 tax credit.
The Caregiver Cost Reduction Act, also bipartisan and bicameral, would allow caregivers to use their own health savings accounts or flexible spending accounts to pay for their parents or in-laws’ medical expenses. These bills were introduced in March 2025 and have since been considered by either the House Ways and Means Committee or the Senate Finance Committee.
