Catching Up Family Caregivers Act of 2026

The Catching Up Family Caregivers Act of 2026 aims to help individuals who have stepped away from the workforce to provide unpaid care for loved ones. Under current law, "catch-up" contributions—which allow people to save more than the standard annual limit in retirement accounts—are generally reserved for workers aged 50 and older. This bill proposes to expand that eligibility, allowing qualified family caregivers to make these extra contributions regardless of their age to make up for lost savings years.

To qualify, an individual would typically need to provide at least 500 hours of unpaid care in a year to a family member, such as a child, an elderly relative, or a person with special needs. The bill proposes allowing these caregivers to access the highest catch-up contribution levels for up to five additional years. This is intended to reduce the long-term financial penalty often faced by caregivers who sacrifice their own career advancement and retirement security to support their families.

If enacted, the bill would require the Department of the Treasury to update tax rules to recognize these caregivers. For citizens, this would mean that those who spent years out of the traditional workforce could potentially contribute more to their 401(k) or similar employer-sponsored plans once they return to work, helping them build a more secure financial future in their later years.