Salazar Bills Improve Retirement Security for Family Caregivers

Florida Rep. Maria Elvira Salazar (R) has introduced two bills that provide retirement security for family caregivers. Spearheading the effort alongside Colorado Rep. Brittany Pettersen (D), the bills have received support in the Senate where a bipartisan group has introduced the Senate versions of these bills.

Reps. Salazar and Pettersen introduced the Improving Retirement Security for Family Caregivers Act and Catching Up Family Caregivers Act this week. The bills address the financial challengers that family caregivers face when they leave the workforce to look after their loved ones. Because of this, the bipartisan effort is pursuing tax breaks and incentives to help caregivers with the challenges they face.

The Improving Retirement Security for Family Caregivers Act allows family caregivers to contribute up to $7,000 annually to a Roth IRA regardless of whether their income falls below that threshold. The current law caps contributions at the lower of $7,000 of yearly income, which limits the ability of caregivers to save for retirement when their earnings are reduced because of their caregiving responsibilities.

The Catching Up Family Caregivers Act provides family caregivers to make catch-up contributions to employer-sponsored retirement plans, which is an option that is usually reserved for people over the age of 50. Every year that caregivers are out of the workforce are years that caregivers could be eligible for an additional year of catch-contributions, which can go up to a maximum of five years.

"Caregiving is one of the most important jobs, but our current policies penalize selfless Americans who look after their loved ones," said Rep. Salazar in a statement. Should these two bills be signed into law, Rep. Salazar argues that they would provide "new opportunities to secure a dignified retirement."

Both of these bills have been endorsed by numerous organizations, including the Alzheimer's Association, the Society for Human Resources Management (SHRM), and the National Alliance for Caregiving.