H.F. 291 Section 1. Section 422.16, subsection 1, paragraph c, Code 1 2023, is amended to read as follows: 2 c. For the purposes of this subsection , at a rate specified 3 by the department, state income tax shall be withheld from 4 pensions, annuities, other similar periodic payments, and other 5 income payments of those persons whose primary residence is in 6 Iowa in those circumstances in which those persons have federal 7 income tax withheld from pensions, annuities, other similar 8 periodic payments, and other income payments under sections 9 3402(o), 3402(p), 3402(s), 3405(a), 3405(b), and 3405(c) of 10 the Internal Revenue Code at a rate to be specified by the 11 department made to Iowa residents if the payments are subject 12 to Iowa tax . 13 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 14 importance, takes effect upon enactment. 15 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 16 retroactively to January 1, 2023, for tax years beginning on 17 or after that date. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to withholding Iowa state income tax from 22 retirement income. 23 Under current law, most retirement income is no longer 24 subject to Iowa income tax. The bill strikes provisions 25 requiring the withholding of state income tax from retirement 26 income payments made to Iowa residents if the retirement income 27 is no longer subject to Iowa income tax. 28 The bill takes effect upon enactment, and applies 29 retroactively to January 1, 2023, for tax years beginning on 30 or after that date. 31 -1- LSB 2101YH (4) 90 jm/jh 1/ 1