The Caregiver Financial Relief Act would allow people to withdraw up to $10,000 per year from retirement accounts without paying the usual 10 percent early withdrawal penalty if the money is used to pay for family caregiving expenses. The bill applies to individuals who care for spouses, family members, or others with long-term care needs, including costs for home health aides, medical equipment, home modifications, respite care, counseling, travel, and lost wages from taking unpaid time off to provide care. Eligible caregivers must obtain certification from a licensed healthcare practitioner that the care recipient has had long-term care needs for at least 180 consecutive days, and expenses must be documented under rules set by the Treasury Department. The withdrawn funds can be repaid to the retirement account under rules similar to existing provisions for other qualified hardship withdrawals. This provision would take effect immediately upon the bill's enactment into law.
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