Gottheimer announces ‘Family Caregiving Plan’

NEW JERSEY — U.S. Congressman Gottheimer (NJ-5) Thursday announced his new “Family Caregiving Plan.”

This includes the bipartisan Caregiver Financial Relief Act, which he is introducing with Congressman Mike Lawler (NY-17), to waive early withdrawal penalties from retirement accounts for family caregiving expenses.

There are more than 53 million family caregivers in the US, with New Jersey also home to more than one million family caregivers, who provide $17.6 billion annually in unpaid labor caring for their loved ones.

The Rising Cost of Family Caregiving

• More than 53 million family members act as caregivers to help their loved ones.
• New Jersey is home to more than one million family caregivers that provide $17.6 billion annually in unpaid labor.
• On average, family caregivers can spend more than one-quarter of their income on caregiving activities. Family caregiver expenses like housing, healthcare and transportation — can end up costing more than $7,000 a year
• Nearly 25 percent of American adults and more than half of people in their 40s are “sandwiched,” with at least one child to support and at least one parent over 65. By 2030, all Baby Boomers will be 65 or older — accounting for 20 percent of the population — almost double what it was in 2000.
• Census Bureau projections suggest by 2034 — for the first time ever — there will be more people in the U.S. over the age of 65 than under 18.

Gottheimer’s Family Caregiving Plan

• First, Gottheimer is introducing the bipartisan Caregiver Financial Relief Act with Congressman Mike Lawler (NY-17) which will waive early withdrawal penalties from retirement accounts for family caregiving expenses.
• Early withdrawal penalties can add up to 10% of every retirement dollar you withdraw.
• Retirement funds can already be withdrawn without penalty for education expenses, home purchases, and certain childcare costs.
• Second, Gottheimer is helping lead the bipartisan Credit for Caring Act to help working family caregivers offset their expenses. This bill, which also has bipartisan support in the Senate, will allow family caregivers to turn up to thirty percent of their family caregiving expenses into a tax credit ranging – up to $5,000 a year.
• Third, Gottheimer is cosponsoring the bipartisan Improving Retirement Security for Family Caregivers Act, so that, if you need to take off work to care for a loved one, it doesn’t end up hurting your own retirement savings. This bipartisan legislation, which is bipartisan in the Senate, will allow caregivers to still contribute the maximum amount into their Roth IRA, up to $7,000, even if they aren’t working full time.
• Finally, Gottheimer is a co-sponsor of the bipartisan Lowering Costs for Caregivers Act to allow funds in flexible spending, health savings, and medical savings accounts to be used toward medical expenses for a loved one. Currently, you’re limited to using these funds only for yourself or a dependent. This bill will change that and help save caregivers on their out-of-pocket medical-related expenses.

“Family caregivers are there to help with everything from preparing meals, to putting on clothes, to coordinating medical care while advocating on behalf of those in need. They’re on it – and, while it’s the right thing to do, aside from the emotional toll, it comes at a huge cost.” Gottheimer said. “This new bipartisan legislation, which I’m introducing will ensure that family caregivers are no longer financially punished for the vital care they provide. “

“Families shouldn’t be penalized for dipping into retirement savings to care for family members in need,” Lawler said. “Our new legislation will make sure they aren’t. This bill is common sense and will help countless families who need it the most.”

Gottheimer was joined by Former Monmouth County Commissioner Amy Mallet, Former Fair Haven Councilman Chris Rodriguez, and New Jersey seniors.