Retirement income in Iowa
Varies
Does Iowa Tax Retirement Income?
Short answer: No. Since 2023, retirement income including pensions, 401(k)s, and IRAs is fully excluded for taxpayers 55+, disabled taxpayers, and surviving spouses/survivors of eligible individuals. Taxpayers under 55 who are not disabled or eligible survivors do not qualify.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Iowa
Varies
Individuals / Personal Taxes
No. Since 2023, retirement income including pensions, 401(k)s, and IRAs is fully excluded for taxpayers 55+, disabled taxpayers, and surviving spouses/survivors of eligible individuals. Taxpayers under 55 who are not disabled or eligible survivors do not qualify.
Business justification
No. Since 2023, retirement income including pensions, 401(k)s, and IRAs is fully excluded for taxpayers 55+, disabled taxpayers, and surviving spouses/survivors of eligible individuals. Taxpayers under 55 who are not disabled or eligible survivors do not qualify. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions