S. 5149 – Reading Mode

118th CONGRESS

2d Session

S. 5149

IN THE SENATE OF THE UNITED STATES

September 24, 2024

Ms. Collins introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to allow additional catch-up contributions for certain family caregivers.

Short title

This Act may be cited as the Catching Up Family Caregivers Act of 2024.

Additional catch-up contributions for certain family caregivers

(a)

In general

Subparagraph (A) of section 414(v)(5) of the Internal Revenue Code of 1986 is amended—

(1)

by striking who would and inserting “who—

(i)

would

(2)

by adding or at the end, and

(3)

by adding at the end the following new clause:

(ii)

is a qualified family caregiver as of the end of the taxable year,

(b)

Qualified family caregiver

Paragraph (6) of section 414(v) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(D)

Qualified family caregiver

(i)

In general

The term qualified family caregiver means an individual who has completed 500 or more hours as a family caregiver during any 1 taxable year.

(ii)

Limitation

An individual shall be treated as a qualified family caregiver for not more than a total of, consecutively or nonconsecutively, the greater of—

(I)

1 taxable year for each taxable year during which such individual completed 500 or more hours as a family caregiver, or

(II)

5 taxable years.

(iii)

Hours

For purposes of this subparagraph, the hours during which an individual was a family caregiver shall be determined by self-certification.

(iv)

Family caregiver

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—

(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.

(c)

IRA catch-Up contributions

Clause (i) of section 219(b)(5) of the Internal Revenue Code of 1986 is amended by striking who has attained the age of 50 before the close of the taxable year, the deductible amount and inserting “who—

(I)

has attained the age of 50 before the close of the taxable year, or

(II)

is a qualified family caregiver (as defined in section 414(v)(6)(D)) as of the close of the taxable year,

the deductible amount

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.