A new bipartisan legislative effort intended to cut red-tape for caregivers supporting their families is being led by US Representative Maria Elvira Salazar (R-FL).
Representative Salazar, alongside Representative Brittany Pettersen (D-CO) and U.S. Senators Susan Collins (R-ME) and Mark Warner (D-VA), has introduced two bills that aim to bolster the finances of caregivers.
Together, the Improving Retirement Security for Family Caregivers Act (H.R. 9765) and Catching Up Family Caregivers Act (H.R. 9764) seek to address the financial challenges faced by individuals who leave the workforce to care for loved ones.
The Improving Retirement Security for Family Caregivers Act would eliminate regulatory hurdles diminishing the contribution amounts caregivers can funnel into a Roth IRA.
The Act would allow family caregivers to contribute up to $7,000 annually to a Roth IRA, even if their income falls below that threshold.
Parallelly, the Catching Up Family Caregivers Act would expand caregivers’ ability to make catch-up payments to employer-sponsored retirement plans, an option typically reserved for those over age 50.
Salazar claims that, together, the bills end restrictive regulations punishing individuals who sacrifice work and finances to care for loved ones.
“Caregiving is one of the most important jobs, but our current policies penalize selfless Americans who look after their loved ones,” said Salazar. “I’m proud to co-lead the Improving Retirement Security for Family Caregivers Act and the Catching Up Family Caregivers Act, which will reward caregivers with new opportunities to secure a dignified retirement.”
According to Salazar’s office, 64 percent of women say their caregiving duties have negatively impacted their ability to save towards their long-term financial goals.
In Florida, per AARP data, there are roughly 2.7 million caregivers with their care to loved ones valued at $40 billion.
Since 2019, there has been a $9 billion increase in caregiver contributions in Florida.
If passed, Salazar’s tandem bills could update federal law to consider these significant expenditures.
