Bill Text: IA HF2160 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act excluding from the individual income tax certain direct trustee-to-trustee transfers from educational savings plan trust accounts to Roth individual retirement accounts, and including retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2024-01-25 - Introduced, referred to State Government. H.J. 141. [HF2160 Detail]
Download: Iowa-2023-HF2160-Introduced.html
House
File
2160
-
Introduced
HOUSE
FILE
2160
BY
STAED
,
WILBURN
,
KURTH
,
AMOS
JR.
,
CAHILL
,
STECKMAN
,
LEVIN
,
MADISON
,
CROKEN
,
JACOBY
,
KRESSIG
,
BROWN-POWERS
,
and
WILSON
A
BILL
FOR
An
Act
excluding
from
the
individual
income
tax
certain
direct
1
trustee-to-trustee
transfers
from
educational
savings
plan
2
trust
accounts
to
Roth
individual
retirement
accounts,
and
3
including
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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(5)
90
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H.F.
2160
Section
1.
Section
422.7,
subsection
22,
paragraph
c,
1
subparagraph
(1),
Code
2024,
is
amended
by
adding
the
following
2
new
subparagraph
division:
3
NEW
SUBPARAGRAPH
DIVISION
.
(g)
A
direct
trustee-to-trustee
4
transfer
to
a
Roth
individual
retirement
account
in
accordance
5
with
section
529(c)(3)(E)
of
the
Internal
Revenue
Code,
as
6
enacted
by
the
federal
Consolidated
Appropriations
Act,
2023,
7
Pub.
L.
No.
117-328.
8
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
9
retroactively
to
January
1,
2024,
for
tax
years
beginning
on
10
or
after
that
date.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
Under
the
federal
Consolidated
Appropriations
Act,
2023,
15
Pub.
L.
No.
117-328,
transfers
from
a
529
educational
account
16
to
a
Roth
individual
retirement
account
beneficiary
are
exempt
17
from
federal
taxation,
subject
to
Roth
contribution
limits
18
and
the
aggregate
lifetime
limit
of
$35,000,
and
if
the
529
19
educational
account
has
existed
for
at
least
15
years.
This
20
bill
also
makes
such
a
transfer
exempt
from
state
individual
21
income
taxation.
22
The
bill
applies
retroactively
to
tax
years
beginning
on
or
23
after
January
1,
2024.
24
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