Bill Text: IA HF2160 | 2023-2024 | 90th General Assembly | Introduced

Iowa House Bill 2160

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) 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 TLSB 5920YH (5) 90 jm/jh

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 -1- LSB 5920YH (5) 90 jm/jh 1/ 1