Iowa Provides Income Tax Exemption for Certain Lump Sum Retirement Benefits

The Iowa Governor signed omnibus tax legislation. The law includes: 1) providing, effective June 6 and applicable retroactively to tax years beginning on or after Jan. 1, an exemption for lump sum distributions from a retirement account from state taxation for a person who is disabled, who is 55 years of age or older, or who is the surviving spouse of an individual or a survivor having an insurable interest in an individual who would have qualified for the exemption for the tax year; and 2) providing, effective June 6, that the sales and use tax exemption for backup power ...