Most IPERS benefits are subject to federal income taxes but are excluded from Iowa income taxes under certain conditions. We will withhold taxes from your retirement benefit, per your direction.
On March 1, 2022, Governor Reynolds signed a tax reform bill that excludes retirement income, including IPERS benefit payments, from Iowa income taxes. The information on this page will help you know whether you are eligible for the exclusion and how you can continue to claim Iowa withholdings if you choose to.
Effective January 31, 2023, IPERS stopped withholding from retirement benefits for members who appeared to qualify for the tax exclusion. If you still want Iowa withholdings, or if you want to change your federal withholding, please complete and submit the state and/or federal W-4P form in the Forms section.
If you will be retiring, IPERS will withhold Iowa income tax unless you indicate on your Iowa W-4P that your IPERS benefits are excluded.