Bills › 90th General Assembly
Excluding nonqualified deferred compensation income from the individual income tax, and including retroactive applicability provisions
Topics:TaxesIncome taxes
Same legislation: HF 2638
Where it is now
- Done: IntroducedJanuary 23, 2024
- Done: SubcommitteeJanuary 31, 2024
- Done: House committeeFebruary 28, 2024
- Done: Passes the HouseMarch 26, 202495–0
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 2638 → Its progress continues under the new number. Go to HF 2638 What’s a funnel?
What’s in it
Under current law, a taxpayer may exclude retirement income from the computation of net income for purposes of the individual income tax. In order to be eligible for the retirement income exclusion, a person must be disabled, at least years of age, or be the surviving spouse of an individual or be a survivor having an insurable interest in an individual who would have qualified for the retirement income exclusion. This bill excludes nonqualified deferred compensation plan income from the computation of net income for purposes of the individual income tax under similar circumstances as the retirement income exclusion.
Read the full explanation
In order to be eligible for the nonqualified deferred compensation plan income exclusion, the taxpayer must be disabled, at least years of age, or be the surviving spouse of an individual or be a survivor having an insurable interest in an individual who would have qualified for the income exclusion.7(19)(a) to ensure “qualified” deferred compensation plans remain excludable from the computation of net income for purposes of the individual income tax. A nonqualified deferred compensation plan is deferred compensation with no federal legal deferral limit that is subject to tax at a later date, and is usually made available to select employees. A qualified deferred compensation plan is subject to compensation deferral limits like 401(k) plans. The bill applies retroactively to January 1, 2024, for tax years beginning on or after that date.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text
House subcommittee
Named January 31, 2024. On February 6, 2024 it recommended passage. Vote Total: 3-0.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
House File 2638 would have a negative fiscal impact on the General Fund, although an estimate cannot be made due to a lack of information on deferred compensation plans in Iowa.
- Retirement Income Exemption, Deferred Compensation Plans · March 4, 2024
Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note
Iowa Code it changes
Amends§422.7
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
4 for · 0 against · 3 undecided · Who →
Family tree
Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.
90th General Assembly
Picked up later
Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.
Similar bills
- HF 94 Relating to individual income taxation by exempting certain amounts received from nonquali…91st General Assembly · Renumbered as HF 961Very similar
Matched by the wording of each bill’s explanation, or an identical title. Companion bills and renumbered versions of this bill aren’t listed; they’re the same bill.