Iowa HF94 exempts up to $500,000 of nonqualified deferred compensation plan income from state income tax for certain individuals.

Iowa HF94 amends the state's individual income tax code to exclude up to $500,000 of nonqualified deferred compensation plan income from the computation of net income. This exclusion applies to individuals who are disabled, at least 55 years of age, or are surviving spouses or survivors with an insurable interest in a deceased individual who would have qualified for the exemption. The bill also includes retroactive applicability provisions, making the changes effective for tax years beginning on or after January 1, 2025.

Iowa HF94 exempts up to $500,000 of nonqualified deferred compensation plan income from state income tax for certain individuals.

Iowa HF94 amends the state's individual income tax code to exclude up to $500,000 of nonqualified deferred compensation plan income from the computation of net income. This exclusion applies to individuals who are disabled, at least 55 years of age, or are surviving spouses or survivors with an insurable interest in a deceased individual who would have qualified for the exemption. The bill also includes retroactive applicability provisions, making the changes effective for tax years beginning on or after January 1, 2025.