To amend the Internal Revenue Code of 1986 to allow certain family caregivers to contribute to a Roth IRA.

Bill 118 hr 9765, also known as the "Family Caregiver Roth IRA Act," aims to amend the Internal Revenue Code of 1986 to provide a new opportunity for certain family caregivers to save for retirement. Specifically, this bill would allow family caregivers who are not currently employed outside the home to contribute to a Roth IRA.

Under current law, individuals must have earned income in order to contribute to a Roth IRA. However, many family caregivers, particularly those caring for children or elderly relatives, may not have traditional earned income as they are not employed in a traditional job. This bill seeks to address this issue by allowing these caregivers to contribute to a Roth IRA using a new type of income called "caregiver income."

Caregiver income would be defined as income received by an individual for providing care to a family member who is unable to perform at least two activities of daily living without assistance. This income would be eligible for contribution to a Roth IRA, up to the annual contribution limit set by the IRS. The Family Caregiver Roth IRA Act aims to provide financial security for family caregivers who may not have access to traditional retirement savings options. By allowing these caregivers to save for retirement through a Roth IRA, this bill seeks to recognize and support the important work that family caregivers do in our society. Overall, the Family Caregiver Roth IRA Act is a bipartisan effort to address the unique financial challenges faced by family caregivers and provide them with a new opportunity to save for retirement.