Ordinary Disability Retirement
The Ordinary Disability Retirement Benefit described in Section 411.6(3), Code of Iowa, is specifically for non-occupationally related injury or sickness. As a result, it does not qualify under Internal Revenue Code (IRC) Section 104 for exclusion from income and should be taxable income.*
*A portion of the Ordinary Disability Retirement Benefit may represent the return of the recipient's own contributions to the System and its predecessors and be excludable from taxable income for that reason.
The information set forth above is not specific tax advice on your particular situation. It is merely general information believed to be accurate which you can provide to your tax advisor for their independent review and confirmation in determining the appropriate tax treatment of your benefits.