91st General Assembly · Funnel one-pager · Monday, November 9, 2026
HF 961: Relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions
Died when the session ended · The 2026 session adjourned on May 3, 2026, 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.
Sponsors
Rep. Megan Jones (R)
Cost
Less revenue: up to $3.5M
The exemption in House File 961 is estimated to decrease revenue to the General Fund by the following amounts: • FY 2026 = $3.1 million • FY 2027 = $3.2 million • FY 2028 = $3.3 million • FY 2029 = $3.3 million • FY 2030 = $3.4 million • FY 2031 = $3.5 million…
Lobbying · 2 for, 0 against
For: Dr. Tanja Garrison; Foundation for Government Accountability Action
In plain words
- March 13, 2025Filed in the House
- March 21, 2025Cost estimate (fiscal note) posted
From public records at legis.iowa.gov, compiled by Funnel (iowafunnel.com), an independent, nonpartisan site. Current as of Monday, November 9, 2026. https://iowafunnel.com/bills/91/HF961