What a taxable index-fund account is actually worth after expense-ratio drag and after Iowa takes its share of the gain — which, in most states, is not at the federal preferential rate.
There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Iowa's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. Long-term capital gains are taxed as ordinary income at the flat 3.8%. Iowa begins from federal taxable income, which already includes net capital gain at 100%, and there is no Iowa preferential rate, no holding-period discount and no general exclusion. The federal preferential long-term rate does not carry over. THE ONE REAL CARVE-OUT IS NARROW AND SHOULD NOT BE GENERALISED: the Iowa capital gain deduction, claimed on Form IA 100 and reported at IA 1040 Schedule 1 line 16, was substantially narrowed by the 2022 reform and now reaches only specific fact patterns, principally the sale of qualifying farm property by a retired farmer and the sale of employer securities to a qualified Iowa ESOP. It is not a general long-term capital gains break and does not apply to ordinary brokerage gains.
What your state actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, not a yes/no list.
2026 limits, employer match, the 60-63 super catch-up, and whether the Roth catch-up mandate applies to you.
When your RMDs start under SECURE 2.0, how much this year's is, and what missing it costs.
What retiring actually costs across all fifty states in 2026 — the three lines that decide it, why ranking states by income tax gets the answer wrong, the federal rules that follow you everywhere, and the decisions that are worth real money before you move.
Iowa charges $0 in state income tax on a typical retirement income, $3,275 in property tax on its median home and $3,765 in insurance — $7,040 together, which is 24th of 50.
What moving actually saves, on your own income mix rather than a headline rate — and how to establish domicile so the state you left cannot follow you.
Which account to draw first, priced. The three cliffs a withdrawal can cross without warning, the conversion window almost nobody uses, and why the order is the last big decision you can still change.