Caregiver Financial Relief Act

This bill allows individuals to withdraw funds from retirement accounts without the usual 10% early withdrawal penalty if the money is used for qualified family caregiving expenses. It directly affects caregivers (like adult children or spouses) who pay for care for a family member certified by a doctor as needing long-term assistance with daily activities. Expenses covered include home modifications, medical supplies, respite care, counseling, lost wages for unpaid time off, and transportation for the care recipient. The total amount exempt from the penalty is capped at $10,000 per year per caregiver. The bill modifies existing tax code to make these withdrawals penalty-free while requiring documentation and certification of the care recipient's needs.