90th General Assembly · Funnel one-pager · Monday, November 9, 2026

HF 2638: Excluding nonqualified deferred compensation income from the individual income tax, and including retroactive applicability provisions

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 it does

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 up to $500,000 of 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.

Cost

See the 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.

Senate subcommittee · named April 2, 2024

Sen. Jason Schultz (R) · jason.schultz@legis.iowa.gov
Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov
Sen. William A. Dotzler Jr. (D) · bill.dotzler@legis.iowa.gov

Lobbying · 4 for, 0 against

For: Iowa Association of Business and Industry (ABI); Iowa Business Council; Iowa Society of Certified Public Accountants; Iowa Taxpayers Association

In plain words

February 28, 2024Filed in the House
March 4, 2024Cost estimate (fiscal note) posted
March 26, 2024Passed the House, 95–0
March 26, 2024Arrived in the Senate
April 2, 2024Senate subcommittee named: Schultz, Dawson and Dotzler