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Senate File 22 - IntroducedA Bill ForAn Act 1relating to the exclusion of certain retirement
2income from the calculation of net income, and including
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, subsection 31, Code 2019, is
2amended to read as follows:
331. For a person who is disabled, or is fifty-five years of
4age or older, or is the surviving spouse of an individual or
5a survivor having an insurable interest in an individual who
6would have qualified for the exemption under this subsection
7for the tax year, subtract, to the extent included, the
8total amount of a governmental or other pension or retirement
9pay, including, but not limited to, defined benefit or
10defined contribution plans, annuities, individual retirement
11accounts, plans maintained or contributed to by an employer,
12or maintained or contributed to by a self-employed person as
13an employer, and deferred compensation plans or any earnings
14attributable to the deferred compensation plans, up to a
15maximum of six twelve thousand dollars for a person, other than
16a husband or wife, who files a separate state income tax return
17and up to a maximum of twelve twenty-four thousand dollars for
18a husband and wife who file a joint state income tax return.
19However, a surviving spouse who is not disabled or fifty-five
20years of age or older can only exclude the amount of pension or
21retirement pay received as a result of the death of the other
22spouse. A husband and wife filing separate state income tax
23returns or separately on a combined state return are allowed
24a combined maximum exclusion under this subsection of up to
25twelve twenty-four thousand dollars. The twelve twenty-four
26 thousand dollar exclusion shall be allocated to the husband or
27wife in the proportion that each spouse’s respective pension
28and retirement pay received bears to total combined pension and
29retirement pay received.
30 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
31retroactively to January 1, 2019, for tax years beginning on
32or after that date.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill relates to the exclusion of certain retirement
2income from the calculation of net income.
3Under the bill, a taxpayer who is disabled, who is at least
455 years of age, or who is the surviving spouse or other
5specified survivor of that qualifying taxpayer may exclude a
6maximum of $12,000 of other retirement income ($24,000 for
7married couples).
8Currently, a taxpayer who is disabled, who is at least 55
9years of age, or who is the surviving spouse or other specified
10survivor of that qualifying taxpayer may exclude a maximum
11of $6,000 of other retirement income ($12,000 for married
12couples).
13The bill does not affect the current exclusion of military
14retirement income.
-2-jm/jh
2income from the calculation of net income, and including
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, subsection 31, Code 2019, is
2amended to read as follows:
331. For a person who is disabled, or is fifty-five years of
4age or older, or is the surviving spouse of an individual or
5a survivor having an insurable interest in an individual who
6would have qualified for the exemption under this subsection
7for the tax year, subtract, to the extent included, the
8total amount of a governmental or other pension or retirement
9pay, including, but not limited to, defined benefit or
10defined contribution plans, annuities, individual retirement
11accounts, plans maintained or contributed to by an employer,
12or maintained or contributed to by a self-employed person as
13an employer, and deferred compensation plans or any earnings
14attributable to the deferred compensation plans, up to a
15maximum of six twelve thousand dollars for a person, other than
16a husband or wife, who files a separate state income tax return
17and up to a maximum of twelve twenty-four thousand dollars for
18a husband and wife who file a joint state income tax return.
19However, a surviving spouse who is not disabled or fifty-five
20years of age or older can only exclude the amount of pension or
21retirement pay received as a result of the death of the other
22spouse. A husband and wife filing separate state income tax
23returns or separately on a combined state return are allowed
24a combined maximum exclusion under this subsection of up to
25twelve twenty-four thousand dollars. The twelve twenty-four
26 thousand dollar exclusion shall be allocated to the husband or
27wife in the proportion that each spouse’s respective pension
28and retirement pay received bears to total combined pension and
29retirement pay received.
30 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
31retroactively to January 1, 2019, for tax years beginning on
32or after that date.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1This bill relates to the exclusion of certain retirement
2income from the calculation of net income.
3Under the bill, a taxpayer who is disabled, who is at least
455 years of age, or who is the surviving spouse or other
5specified survivor of that qualifying taxpayer may exclude a
6maximum of $12,000 of other retirement income ($24,000 for
7married couples).
8Currently, a taxpayer who is disabled, who is at least 55
9years of age, or who is the surviving spouse or other specified
10survivor of that qualifying taxpayer may exclude a maximum
11of $6,000 of other retirement income ($12,000 for married
12couples).
13The bill does not affect the current exclusion of military
14retirement income.
-2-jm/jh