Iowa 2023-2024 Regular Session

Iowa House Bill HF2537

Introduced

2/15/24

Refer

2/26/24

Introduced

2/15/24

Refer

2/26/24

Caption

A bill for an act relating to the treasurer of state's duties, including Iowa educational savings plan trust and Iowa ABLE savings plan trust requirements and disposition of unclaimed property, and including retroactive applicability provisions.(Formerly HSB 626; See HF 2667.)

Impact

The bill introduces a significant change by aligning the adjustment of contribution limits to the higher education price index, which may better reflect the actual cost increases associated with educational expenses, rather than the general consumer price index. Furthermore, it permits direct transfers from a 529 account to a Roth IRA, exempting these transfers from state individual income taxation. This retroactive applicability from January 1, 2024, for the tax year beginning on or after that date provides immediate benefits for ongoing savings strategies.

Summary

House File 2537 relates to the duties of the treasurer of the state of Iowa, focusing on the modification of requirements for educational savings plans and the management of unclaimed property. This legislation aims to enhance the Iowa Educational Savings Plan Trust and the Iowa ABLE Savings Plan by increasing the maximum amount that can be contributed to these accounts for tax deduction purposes. The proposed increase raises the contribution limit from $3,785 to $5,500 per year for each beneficiary, which allows for better tax planning and savings opportunities for families and individuals saving for education or disability expenses.

Conclusion

Overall, HF2537 presents a combined effort to enhance savings opportunities through educational accounts while simplifying state processes regarding unclaimed property. As legislation progresses, attention will likely focus on the impact of reduced publication requirements and the balance between easing processes and ensuring public awareness.

Contention

Another crucial component of HF2537 addresses the disposition of unclaimed property. The bill reduces the mandatory requirements for the treasurer to publish notices regarding unclaimed property, allowing for a more discretionary approach. Stakeholders may have concerns about the reduced transparency in unclaimed property reporting, and whether this could lead to less public awareness about available claims. Additionally, the treasurer's ability to identify apparent owners of unclaimed property using state tax information could raise privacy considerations for some individuals.

Latest IA HF2537 Activity

View All Events: IA 2023-2024 Regular Session HF2537

Companion Bills

IA SSB3116

Related A bill for an act relating to the treasurer of state's duties, including Iowa educational savings plan trust and Iowa ABLE savings plan trust requirements and disposition of unclaimed property, and including effective date and retroactive applicability provisions.(See SF 2236.)

IA HSB626

IA SF2236

Similar To A bill for an act relating to the treasurer of state's duties, including Iowa educational savings plan trust and Iowa ABLE savings plan trust requirements and disposition of unclaimed property, and including effective date and retroactive applicability provisions.(Formerly SSB 3116.)

IA HF2667

Similar To A bill for an act relating to the treasurer of state's duties, including Iowa educational savings plan trust and Iowa ABLE savings plan trust requirements and disposition of unclaimed property, and including retroactive applicability provisions. (Formerly HF 2537, HSB 626.) Effective date: 07/01/2024. Applicability date: 01/01/2024.

Previously Filed As

IA SF2326

A bill for an act modifying first-time homebuyers savings accounts, and including retroactive applicability provisions.

IA SF185

A bill for an act establishing a retirement savings plan trust, and including implementation provisions.

IA HF988

A bill for an act creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions.(Formerly HF 622, HSB 149.)

IA HF622

A bill for an act creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions.(Formerly HSB 149; See HF 988.)

IA HF2373

A bill for an act establishing a retirement savings plan trust, providing penalties, and including implementation provisions.

IA SSB1234

A bill for an act establishing a retirement savings plan trust, making appropriations, and including implementation provisions.

IA HSB149

A bill for an act creating a catastrophic savings account and modifying individual income taxes for account holders and including applicability provisions.(See HF 622, HF 988.)

IA HF2713

A bill for an act relating to education, including by modifying provisions related to charter schools, the Iowa public employees' retirement system, financing programs for charter schools and nonpublic schools administered by the Iowa finance authority, the statewide voluntary preschool program for the school start date, training and licensure, and making appropriations, and including applicability and retroactive applicability provisions.(Formerly HSB 735; See HF 2754.)

IA SF2425

A bill for an act relating to education, including by modifying provisions related to charter schools, the Iowa public employees' retirement system, financing programs for charter schools and nonpublic schools administered by the Iowa finance authority, the statewide voluntary preschool program for four-year-old children, education savings accounts, independent accrediting agencies, teacher training and licensure, and making appropriations, and including applicability and retroactive applicability provisions.(Formerly SF 2175; See SF 2501.)

IA HSB735

A bill for an act relating to education, including by modifying provisions related to charter schools, the Iowa public employees' retirement system, financing programs for charter schools and nonpublic schools administered by the Iowa finance authority, the statewide voluntary preschool program for four-year-old children, education savings accounts, the school start date, independent accrediting agencies, teacher training and licensure, and making appropriations, and including applicability and retroactive applicability provisions.(See HF 2713, HF 2754.)