Bills › 90th General Assembly
Excluding from the individual income tax certain direct trustee-to-trustee transfers from educational savings plan trust accounts to Roth individual retirement accounts, and including retroactive applicability provisions
Topics:TaxesIncome taxes
Where it is now
- Done: IntroducedJanuary 25, 2024
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2024 session adjourned on April 19, 2024, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary People who move money from a 529 college savings account into a Roth retirement account will not have to pay Iowa state income tax on that money. To qualify, the 529 account must have been open for at least 15 years and the transfer must follow certain federal limits. This change applies to tax years starting on or after January 1, 2024.1
Read the official explanation
Under the federal Consolidated Appropriations Act, 2023, Pub. L. No. 117-328, transfers from a 529 educational account to a Roth individual retirement account beneficiary are exempt from federal taxation, subject to Roth contribution limits and the aggregate lifetime limit of $35,000, and if the 529 educational account has existed for at least 15 years. This bill also makes such a transfer exempt from state individual income taxation. The bill applies retroactively to tax years beginning on or after January 1, 2024.