§ 450.4 — Exemptions

Iowa § 450.4

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 450: INHERITANCE TAX

Text

The tax imposed by this chapter shall not be collected:
1. Whentheentireestateofthedecedentdoesnotexceedthesumoftwenty-fivethousand
dollars after deducting the liabilities, as defined in this chapter.
2. When the property passes for a charitable, educational, or religious purpose as defined
in sections 170(c) and 2055 of the Internal Revenue Code.
3. When the property passes to public libraries or public art galleries within this state,
open to the use of the public and not operated for gain, or to hospitals within this state,
or to trustees for such uses within this state, or to municipal corporations for purely public
purposes.
4. On bequests for the care and maintenance of the cemetery or burial lot of the decedent
or the decedent’s family, and bequests not to exceed five hundred dollars in any estate of
a decedent for the performance of a religious service or services by some person regularly
ordained, authorized, or licensed by some religious society to perform such service, which
service or services are to be performed for or in behalf of the testator or some person named
in the testator’s last will.
5. a. On that portion of the decedent’s interest in an employer-provided or
employer-sponsored retirement plan or on that portion of the decedent’s individual
retirement account that will be subject to federal income tax when paid to the beneficiary.
This exemption shall apply regardless of the identity of the beneficiary and regardless of the
number of payments to be made after the decedent’s death.
b. For purposes of this exemption:
(1) An “individual retirement account” includes an individual retirement annuity or any
other arrangement as defined in section 408 of the Internal Revenue Code.
(2) An “employer-provided or employer-sponsored retirement plan” includes a qualified
retirement plan as defined in section 401 of the Internal Revenue Code, a governmental or
nonprofit employer’s deferred compensation plan as defined in section 457 of the Internal
Revenue Code, and an annuity as defined in section 403 of the Internal Revenue Code.
6. On property in an individual development account in the name of the decedent
that passes to another individual development account. For purposes of this subsection,
“individual development account” means an account that has been certified as an individual
development account pursuant to chapter 541A.
7. On the value of tangible personal property as defined in section 633.276 which is
distributed in kind from the estate if the aggregate of all tangible personal property in the
estate does not exceed five thousand dollars.
8. On the value of any interest in a qualified tuition plan, as defined in section 529 of the
Internal Revenue Code, to the same extent to which the value is excluded from the decedent’s
gross estate for federal estate tax purposes. This subsection shall apply to all qualified tuition
plans that are in existence on or after July 1, 1998.
9. On the value of any interest in the Iowa ABLE savings plan trust created in chapter 12I,
or any interest held by a resident account owner in a qualified ABLE program with which the
state has contracted pursuant to section 12I.10.

Legislative History

[S13, §1481-a1; C24, 27, 31, 35, 39, §7308; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §450.4; 81 Acts, ch 147, §1, 19]