Updated September 4, 2026. Quick answer: No, not for most retirees. Iowa fully exempts pension, IRA and 401(k) income, with no dollar cap, for taxpayers who are 55 or older, disabled, or a surviving spouse, covering public, private, federal and military pensions alike.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Iowa taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Fully exempt, no dollar cap, for taxpayers 55 or older, disabled, or a surviving spouse. |
|---|---|
| Private (employer) pensions | Fully exempt under the same rule as public pensions; the statute does not distinguish by employer type. |
| Federal government pensions (FERS/CSRS) | Structurally included in the same exemption, which covers “a governmental or other pension” without limitation by government level. |
| Military retirement pay | Fully exempt regardless of age, under a separate statutory clause from the general pension exemption. |
| IRA and 401(k)/403(b) distributions | Fully exempt for the same 55+/disabled/surviving-spouse group as pensions; traditional and Roth IRAs, 401(k), 457(b), SEP, SIMPLE and Keogh plans all qualify. Nonqualified annuities and deferred compensation remain taxable. |
| General retirement-income exclusion | Iowa’s pension exclusion is itself the general, uncapped exclusion for the 55+/disabled/surviving-spouse group, effective tax years beginning January 1, 2023. |
Coordinate this with your overall retirement plan
An adviser can help weigh how much of a pension or IRA withdrawal to take this year, whether a Roth conversion makes sense before or after a move, and how state tax interacts with the rest of your plan, but that does not replace the numbers in your own return.
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Social Security
Social Security is never taxed by Iowa. Social Security has its own rules in every state; see the full breakdown in how Iowa taxes retirement income generally.
Statute and sources
Governing citation: Iowa Code sec. 422.7(19) (general pension/retirement exclusion), (20) (military retirement).
Read September 4, 2026.
Related: how Iowa taxes retirement income generally · does Iowa tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.