A bill for an act relating to individual income taxation by exempting certain amounts received from nonqualified deferred compensation plans and including retroactive applicability provisions.

HF 94 exempts up to $500,000 of income from nonqualified deferred compensation plans (like certain deferred pay for select employees) from Iowa's individual income tax for eligible individuals. This applies to people who are disabled, at least 55 years old, or surviving spouses of someone who qualified under the same rules. The exemption covers both the principal amount and earnings from these plans, mirroring existing retirement income exclusion rules. The bill applies retroactively to tax years beginning January 1, 2025.