Iowa Tax Exclusion for Retirement Plan Withdrawals by Activ…

Iowa Tax Exclusion for Retirement Plan Withdrawals by Activated Reserve Component Members

Iowa Department of Revenue

Withdrawal free of Iowa income tax and the state tax penalty

If you are called to active duty from the National Guard or Reserves, a withdrawal you take from a qualified retirement account is free of Iowa income tax and free of the state tax penalty. Federal taxes still apply.

Check eligibility

How to apply

There is nothing to apply for. Leave the qualifying withdrawal out of the income you report on your Iowa return and keep your activation orders with your tax records.

What you'll need

Your orders showing the call to active duty, and the Form 1099-R for the retirement account withdrawal.

Eligibility

You file an Iowa income tax return
You are a National Guard member called to federal or state active duty, or a U.S. Armed Forces Reserve member called to federal active duty
You made a withdrawal from a qualified retirement account

Source

Official source

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