91st General Assembly · Funnel one-pager · Monday, November 9, 2026

SF 201: 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 General Assembly adjourned on October 2, 2026. 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

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…

Senate subcommittee · named February 11, 2025

Sen. Jason Schultz (R) · jason.schultz@legis.iowa.gov
Sen. Tony Bisignano (D) · tony.bisignano@legis.iowa.gov
Sen. Dan Dawson (R) · dan.dawson@legis.iowa.gov

Lobbying · 2 for, 0 against

For: Dr. Tanja Garrison; Foundation for Government Accountability Action

In plain words

February 4, 2025Filed in the Senate and sent to the Ways and Means committee
February 11, 2025Senate subcommittee named: Schultz, Bisignano and Dawson