U.S. Rep. Jackie Walorski (R-IN) is the lead original cosponsor of bipartisan legislation that would help family caregivers catch up on retirement savings once they’ve returned to the workforce.
“Hard-working Americans who take time away from the workforce to care for a loved one often face difficulties saving enough for retirement,” Rep. Walorski said. “Women in the workforce are especially at risk because they are more likely to put their jobs on hold to become full-time family caregivers. This bipartisan bill will help them set aside the retirement savings they need once they return to work by allowing them to start catch-up contributions to their retirement accounts sooner.”
Rep. Walorski on June 4 introduced the Expanding Access to Retirement Savings for Caregivers Act, H.R. 3078, with bill cosponsor U.S. Rep. Harley Rouda (D-CA). The bill would allow individuals who took at least one year out of the workforce without receiving an earned income to care for a family member to make catch-up contributions in years prior to age 50 to their 401(k) plans, individual retirement accounts and other eligible retirement accounts.
Currently, employees aged 50 and older may use catch-up contributions to make additional deposits to such retirement accounts, leaving younger individuals unable to save for their retirement over multiple years, according to information provided by Rep. Walorski’s office. Women are predominantly impacted because they are more likely than men to take time out of the workforce to be full-time family caregivers.
If enacted, H.R. 3078 also would introduce new tools for returning workers to contribute to their retirement savings accounts, according to the congresswoman’s information.
Among the members joining Rep. Walorski as a cosponsor of H.R. 3078 is U.S. Rep. Brian Fitzpatrick (R-PA). The measure has been referred for consideration to the U.S. House Ways and Means Committee.