House
Study
Bill
228
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
increasing
the
exclusion
from
the
calculation
of
1
net
income
for
pensions
and
other
retirement
benefits,
2
increasing
the
eligible
age
for
the
exclusion,
and
including
3
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
2701YC
(5)
84
tw/sc
H.F.
_____
Section
1.
Section
422.7,
subsection
31,
Code
2011,
is
1
amended
to
read
as
follows:
2
31.
For
a
person
who
is
disabled,
or
is
fifty-five
3
sixty-five
years
of
age
or
older,
or
is
the
surviving
spouse
4
of
an
individual
or
a
survivor
having
an
insurable
interest
5
in
an
individual
who
would
have
qualified
for
the
exemption
6
under
this
subsection
for
the
tax
year,
subtract,
to
the
extent
7
included,
the
total
amount
of
a
governmental
or
other
pension
8
or
retirement
pay,
including
,
but
not
limited
to
,
defined
9
benefit
or
defined
contribution
plans,
annuities,
individual
10
retirement
accounts,
plans
maintained
or
contributed
to
by
an
11
employer,
or
maintained
or
contributed
to
by
a
self-employed
12
person
as
an
employer,
and
deferred
compensation
plans
or
any
13
earnings
attributable
to
the
deferred
compensation
plans
,
up
14
to
a
maximum
of
six
thousand
dollars
for
a
person,
other
than
a
15
husband
or
wife,
who
files
a
separate
state
income
tax
return
16
and
up
to
a
maximum
of
twelve
thousand
dollars
for
a
husband
17
and
wife
who
file
a
joint
state
income
tax
return.
However,
a
18
surviving
spouse
who
is
not
disabled
or
fifty-five
years
of
age
19
or
older
can
only
exclude
the
amount
of
pension
or
retirement
20
pay
received
as
a
result
of
the
death
of
the
other
spouse.
A
21
husband
and
wife
filing
separate
state
income
tax
returns
or
22
separately
on
a
combined
state
return
are
allowed
a
combined
23
maximum
exclusion
under
this
subsection
of
up
to
twelve
24
thousand
dollars.
The
twelve
thousand
dollar
exclusion
shall
25
be
allocated
to
the
husband
or
wife
in
the
proportion
that
each
26
spouse’s
respective
pension
and
retirement
pay
received
bears
27
to
total
combined
pension
and
retirement
pay
received
.
28
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
29
retroactively
to
January
1,
2011,
for
tax
years
beginning
on
30
or
after
that
date.
31
EXPLANATION
32
This
bill
increases
the
amount
of
the
income
exclusion
for
33
governmental
or
other
pension
or
retirement
pay
to
the
full
34
amount
of
such
benefits
includable
in
income
for
state
tax
35
-1-
LSB
2701YC
(5)
84
tw/sc
1/
2
H.F.
_____
purposes
and
raises
the
age
at
which
the
exclusion
is
available
1
from
55
years
of
age
to
65
years
of
age.
2
The
bill
applies
retroactively
to
January
1,
2011,
for
tax
3
years
beginning
on
or
after
that
date.
4
-2-
LSB
2701YC
(5)
84
tw/sc
2/
2