diff --git a/plugins/modules/iam_user.py b/plugins/modules/iam_user.py
index 2a7998a6d10..e308c3cf0cb 100644
--- a/plugins/modules/iam_user.py
+++ b/plugins/modules/iam_user.py
@@ -12,7 +12,8 @@
 version_added: 1.0.0
 short_description: Manage AWS IAM users
 description:
-  - Manage AWS IAM users.
+  - A module to manage AWS IAM users.
+  - The module does not manage groups that users belong to, groups memberships can be managed using `iam_group`.
 author: Josh Souza (@joshsouza)
 options:
   name:
@@ -20,6 +21,27 @@
       - The name of the user to create.
     required: true
     type: str
+  password:
+    description:
+      - The password to apply to the user.
+    required: false
+    type: str
+    version_added: 2.2.0
+  update_password:
+    default: always
+    choices: ['always', 'on_create']
+    description:
+      - When to update user passwords.
+      - I(update_password=always) will ensure the password is set to I(password).
+      - I(update_password=on_create) will only set the password for newly created users.
+    type: str
+    version_added: 2.2.0
+  remove_password:
+    description:
+      - Option to delete user login passwords.
+      - This field is mutually exclusive to I(password).
+    type: 'bool'
+    version_added: 2.2.0
   managed_policies:
     description:
       - A list of managed policy ARNs or friendly names to attach to the user.
@@ -36,7 +58,7 @@
     type: str
   purge_policies:
     description:
-      - When I(purge_policies=true) any managed policies not listed in I(managed_policies) will be detatched.
+      - When I(purge_policies=true) any managed policies not listed in I(managed_policies) will be detached.
     required: false
     default: false
     type: bool
@@ -53,6 +75,19 @@
     default: true
     type: bool
     version_added: 2.1.0
+  wait:
+    description:
+      - When I(wait=True) the module will wait for up to I(wait_timeout) seconds
+        for IAM user creation before returning.
+    default: True
+    type: bool
+    version_added: 2.2.0
+  wait_timeout:
+    description:
+      - How long (in seconds) to wait for creation / updates to complete.
+    default: 120
+    type: int
+    version_added: 2.2.0
 extends_documentation_fragment:
 - amazon.aws.aws
 - amazon.aws.ec2
@@ -70,6 +105,12 @@
     name: testuser1
     state: present
 
+- name: Create a user with a password
+  community.aws.iam_user:
+    name: testuser1
+    password: SomeSecurePassword
+    state: present
+
 - name: Create a user and attach a managed policy using its ARN
   community.aws.iam_user:
     name: testuser1
@@ -179,15 +220,75 @@ def convert_friendly_names_to_arns(connection, module, policy_names):
         module.fail_json(msg="Couldn't find policy: " + str(e))
 
 
+def wait_iam_exists(connection, module):
+    if module.check_mode:
+        return
+    if not module.params.get('wait'):
+        return
+
+    user_name = module.params.get('name')
+    wait_timeout = module.params.get('wait_timeout')
+
+    delay = min(wait_timeout, 5)
+    max_attempts = wait_timeout // delay
+
+    try:
+        waiter = connection.get_waiter('user_exists')
+        waiter.wait(
+            WaiterConfig={'Delay': delay, 'MaxAttempts': max_attempts},
+            UserName=user_name,
+        )
+    except botocore.exceptions.WaiterError as e:
+        module.fail_json_aws(e, msg='Timeout while waiting on IAM user creation')
+    except (botocore.exceptions.ClientError, botocore.exceptions.BotoCoreError) as e:
+        module.fail_json_aws(e, msg='Failed while waiting on IAM user creation')
+
+
+def create_or_update_login_profile(connection, module):
+
+    # Apply new password / update password for the user
+    user_params = dict()
+    user_params['UserName'] = module.params.get('name')
+    user_params['Password'] = module.params.get('password')
+
+    try:
+        connection.update_login_profile(**user_params)
+    except is_boto3_error_code('NoSuchEntity'):
+        try:
+            connection.create_login_profile(**user_params)
+        except (botocore.exceptions.ClientError, botocore.exceptions.BotoCoreError) as e:
+            module.fail_json_aws(e, msg="Unable to create user login profile")
+    except (botocore.exceptions.ClientError, botocore.exceptions.BotoCoreError) as e:  # pylint: disable=duplicate-except
+        module.fail_json_aws(e, msg="Unable to update user login profile")
+
+    return True
+
+
+def delete_login_profile(connection, module):
+
+    user_params = dict()
+    user_params['UserName'] = module.params.get('name')
+
+    try:
+        connection.delete_login_profile(**user_params)
+    except (botocore.exceptions.ClientError, botocore.exceptions.BotoCoreError) as e:
+        module.fail_json_aws(e, msg="Unable to delete user login profile")
+
+    return True
+
+
 def create_or_update_user(connection, module):
 
     params = dict()
     params['UserName'] = module.params.get('name')
     managed_policies = module.params.get('managed_policies')
     purge_policies = module.params.get('purge_policies')
+
     if module.params.get('tags') is not None:
         params["Tags"] = ansible_dict_to_boto3_tag_list(module.params.get('tags'))
+
     changed = False
+
     if managed_policies:
         managed_policies = convert_friendly_names_to_arns(connection, module, managed_policies)
 
@@ -205,8 +306,23 @@ def create_or_update_user(connection, module):
             changed = True
         except (botocore.exceptions.ClientError, botocore.exceptions.BotoCoreError) as e:
             module.fail_json_aws(e, msg="Unable to create user")
+
+        # Wait for user to be fully available before continuing
+        if module.params.get('wait'):
+            wait_iam_exists(connection, module)
+
+        if module.params.get('password') is not None:
+            create_or_update_login_profile(connection, module)
     else:
-        changed = update_user_tags(connection, module, params, user)
+        login_profile_result = None
+        update_result = update_user_tags(connection, module, params, user)
+
+        if module.params['update_password'] == "always" and module.params.get('password') is not None:
+            login_profile_result = create_or_update_login_profile(connection, module)
+        elif module.params.get('remove_password'):
+            login_profile_result = delete_login_profile(connection, module)
+
+        changed = bool(update_result) or bool(login_profile_result)
 
     # Manage managed policies
     current_attached_policies = get_attached_policy_list(connection, module, params['UserName'])
@@ -388,16 +504,22 @@ def main():
 
     argument_spec = dict(
         name=dict(required=True, type='str'),
+        password=dict(type='str', no_log=True),
+        update_password=dict(default='always', choices=['always', 'on_create'], no_log=False),
+        remove_password=dict(type='bool'),
         managed_policies=dict(default=[], type='list', aliases=['managed_policy'], elements='str'),
         state=dict(choices=['present', 'absent'], required=True),
         purge_policies=dict(default=False, type='bool', aliases=['purge_policy', 'purge_managed_policies']),
         tags=dict(type='dict'),
         purge_tags=dict(type='bool', default=True),
+        wait=dict(type='bool', default=True),
+        wait_timeout=dict(default=120, type='int'),
     )
 
     module = AnsibleAWSModule(
         argument_spec=argument_spec,
-        supports_check_mode=True
+        supports_check_mode=True,
+        mutually_exclusive=[['password', 'remove_password']]
     )
 
     connection = module.client('iam')
diff --git a/tests/integration/targets/iam_user/defaults/main.yml b/tests/integration/targets/iam_user/defaults/main.yml
index 8a69ca0931c..1bbb5df0bf0 100644
--- a/tests/integration/targets/iam_user/defaults/main.yml
+++ b/tests/integration/targets/iam_user/defaults/main.yml
@@ -2,6 +2,10 @@
 test_group: '{{ resource_prefix }}-group'
 test_path: '/'
 test_user:  '{{ test_users[0] }}'
+test_user3:  '{{ test_users[2] }}'
+test_password: ATotallySecureUncrackablePassword1!
+test_new_password: ATotallyNewSecureUncrackablePassword1!
 test_users:
   - '{{ resource_prefix }}-user-a'
   - '{{ resource_prefix }}-user-b'
+  - '{{ resource_prefix }}-user-c'
diff --git a/tests/integration/targets/iam_user/tasks/main.yml b/tests/integration/targets/iam_user/tasks/main.yml
index 76d13e57f19..397ba70a23e 100644
--- a/tests/integration/targets/iam_user/tasks/main.yml
+++ b/tests/integration/targets/iam_user/tasks/main.yml
@@ -11,10 +11,11 @@
   block:
   - name: ensure improper usage of parameters fails gracefully
     iam_user_info:
-      path: '{{ test_path }}'
-      group: '{{ test_group }}'
+      path: "{{ test_path }}"
+      group: "{{ test_group }}"
     ignore_errors: yes
     register: iam_user_info_path_group
+
   - assert:
       that:
         - iam_user_info_path_group is failed
@@ -22,7 +23,7 @@
 
   - name: create test user (check mode)
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
     check_mode: yes
     register: iam_user
@@ -34,7 +35,7 @@
 
   - name: create test user
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
     register: iam_user
 
@@ -45,7 +46,7 @@
 
   - name: ensure test user exists (no change)
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
     register: iam_user
 
@@ -56,7 +57,8 @@
 
   - name: ensure the info used to validate other tests is valid
     set_fact:
-        test_iam_user: '{{ iam_user.iam_user.user }}'
+      test_iam_user: "{{ iam_user.iam_user.user }}"
+
   - assert:
       that:
         - 'test_iam_user.arn.startswith("arn:aws:iam")'
@@ -70,15 +72,18 @@
   - name: get info on IAM user(s)
     iam_user_info:
     register: iam_user_info
+
   - assert:
       that:
         - iam_user_info.iam_users | length != 0
 
   - name: get info on IAM user(s) with name
     iam_user_info:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
     register: iam_user_info
+
   - debug: var=iam_user_info
+
   - assert:
       that:
         - iam_user_info.iam_users | length == 1
@@ -89,11 +94,37 @@
         - iam_user_info.iam_users[0].user_name == test_iam_user.user_name
         - iam_user_info.iam_users[0].tags | length == 0
 
+  - name: create test user with password (check mode)
+    iam_user:
+      name: "{{ test_user3 }}"
+      password: "{{ test_password }}"
+      state: present
+    check_mode: yes
+    register: iam_user
+
+  - name: assert that the second user would be created
+    assert:
+      that:
+        - iam_user is changed
+
+  - name: create second test user with password
+    iam_user:
+      name: "{{ test_user3 }}"
+      password: "{{ test_password }}"
+      state: present
+    register: iam_user
+
+  - name: assert that the second user is created
+    assert:
+      that:
+        - iam_user is changed
+
   - name: get info on IAM user(s) on path
     iam_user_info:
-      path: '{{ test_path }}'
-      name: '{{ test_user }}'
+      path: "{{ test_path }}"
+      name: "{{ test_user }}"
     register: iam_user_info
+
   - assert:
       that:
         - iam_user_info.iam_users | length == 1
@@ -104,39 +135,42 @@
         - iam_user_info.iam_users[0].user_name == test_iam_user.user_name
         - iam_user_info.iam_users[0].tags | length == 0
 
-  - name: 'Add Tag'
+  ## Test tags creation / updates
+  - name: "Add Tag"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       tags:
         TagA: ValueA
     register: iam_user
+
   - assert:
       that:
-          - iam_user is changed
-          - iam_user.iam_user.user.user_name == test_user
-          - iam_user.iam_user.user.tags | length == 1
-          - '"TagA" in iam_user.iam_user.user.tags'
-          - iam_user.iam_user.user.tags.TagA == "ValueA"
+        - iam_user is changed
+        - iam_user.iam_user.user.user_name == test_user
+        - iam_user.iam_user.user.tags | length == 1
+        - '"TagA" in iam_user.iam_user.user.tags'
+        - iam_user.iam_user.user.tags.TagA == "ValueA"
 
-  - name: 'Add Tag (no change)'
+  - name: "Add Tag (no change)"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       tags:
         TagA: ValueA
     register: iam_user
+
   - assert:
       that:
-          - iam_user is not changed
-          - iam_user.iam_user.user.user_name == test_user
-          - iam_user.iam_user.user.tags | length == 1
-          - '"TagA" in iam_user.iam_user.user.tags'
-          - iam_user.iam_user.user.tags.TagA == "ValueA"
+        - iam_user is not changed
+        - iam_user.iam_user.user.user_name == test_user
+        - iam_user.iam_user.user.tags | length == 1
+        - '"TagA" in iam_user.iam_user.user.tags'
+        - iam_user.iam_user.user.tags.TagA == "ValueA"
 
-  - name: 'Extend Tags'
+  - name: "Extend Tags"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       purge_tags: no
       tags:
@@ -144,83 +178,114 @@
         "Tag C": "Value C"
         "tag d": "value d"
     register: iam_user
+
   - assert:
       that:
-          - iam_user is changed
-          - iam_user.iam_user.user.user_name == test_user
-          - iam_user.iam_user.user.tags | length == 4
-          - '"TagA" in iam_user.iam_user.user.tags'
-          - '"tag_b" in iam_user.iam_user.user.tags'
-          - '"Tag C" in iam_user.iam_user.user.tags'
-          - '"tag d" in iam_user.iam_user.user.tags'
-          - iam_user.iam_user.user.tags.TagA == "ValueA"
-          - iam_user.iam_user.user.tags.tag_b == "value_b"
-          - iam_user.iam_user.user.tags["Tag C"] == "Value C"
-          - iam_user.iam_user.user.tags["tag d"] == "value d"
-
-  - name: 'Create user without Tag (no change)'
+        - iam_user is changed
+        - iam_user.iam_user.user.user_name == test_user
+        - iam_user.iam_user.user.tags | length == 4
+        - '"TagA" in iam_user.iam_user.user.tags'
+        - '"tag_b" in iam_user.iam_user.user.tags'
+        - '"Tag C" in iam_user.iam_user.user.tags'
+        - '"tag d" in iam_user.iam_user.user.tags'
+        - iam_user.iam_user.user.tags.TagA == "ValueA"
+        - iam_user.iam_user.user.tags.tag_b == "value_b"
+        - iam_user.iam_user.user.tags["Tag C"] == "Value C"
+        - iam_user.iam_user.user.tags["tag d"] == "value d"
+
+  - name: "Create user without Tag (no change)"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
     register: iam_user
+
   - assert:
       that:
-          - iam_user is not changed
-          - iam_user.iam_user.user.user_name == test_user
-          - iam_user.iam_user.user.tags | length == 4
+        - iam_user is not changed
+        - iam_user.iam_user.user.user_name == test_user
+        - iam_user.iam_user.user.tags | length == 4
 
-  - name: 'Remove all Tags (check mode)'
+  - name: "Remove all Tags (check mode)"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       tags: {}
     check_mode: yes
     register: iam_user
+
   - assert:
       that:
-          - iam_user is changed
+        - iam_user is changed
 
-  - name: 'Remove 3 Tags'
+  - name: "Remove 3 Tags"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       tags:
         TagA: ValueA
     register: iam_user
+
   - assert:
       that:
-          - iam_user is changed
-          - iam_user.iam_user.user.user_name == test_user
-          - iam_user.iam_user.user.tags | length == 1
-          - '"TagA" in iam_user.iam_user.user.tags'
-          - iam_user.iam_user.user.tags.TagA == "ValueA"
+        - iam_user is changed
+        - iam_user.iam_user.user.user_name == test_user
+        - iam_user.iam_user.user.tags | length == 1
+        - '"TagA" in iam_user.iam_user.user.tags'
+        - iam_user.iam_user.user.tags.TagA == "ValueA"
 
-  - name: 'Change Tag'
+  - name: "Change Tag"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       tags:
         TagA: AnotherValueA
     register: iam_user
+
   - assert:
       that:
-          - iam_user is changed
-          - iam_user.iam_user.user.user_name == test_user
-          - iam_user.iam_user.user.tags | length == 1
-          - '"TagA" in iam_user.iam_user.user.tags'
-          - iam_user.iam_user.user.tags.TagA == "AnotherValueA"
-  
-  - name: 'Remove All Tags'
+        - iam_user is changed
+        - iam_user.iam_user.user.user_name == test_user
+        - iam_user.iam_user.user.tags | length == 1
+        - '"TagA" in iam_user.iam_user.user.tags'
+        - iam_user.iam_user.user.tags.TagA == "AnotherValueA"
+
+  - name: "Remove All Tags"
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       tags: {}
     register: iam_user
+
   - assert:
       that:
-          - iam_user is changed
-          - iam_user.iam_user.user.user_name == test_user
-          - iam_user.iam_user.user.tags | length == 0
+        - iam_user is changed
+        - iam_user.iam_user.user.user_name == test_user
+        - iam_user.iam_user.user.tags | length == 0
+
+  ## Test user password update
+  - name: test update IAM password with on_create only
+    iam_user:
+      name: "{{ test_user3 }}"
+      password: "{{ test_new_password }}"
+      update_password: "on_create"
+      state: present
+    register: iam_user_update
+
+  - assert:
+      that:
+        - iam_user_update is not changed
+
+  - name: update IAM password
+    iam_user:
+      name: "{{ test_user3 }}"
+      password: "{{ test_new_password }}"
+      state: present
+    register: iam_user_update
+
+  - assert:
+      that:
+        - iam_user_update is changed
+        - iam_user_update.iam_user.user.user_name == test_user3
 
   # ===========================================
   # Test Managed Policy management
@@ -232,7 +297,7 @@
   - name: attach managed policy to user (check mode)
     check_mode: yes
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/AWSDenyAll
@@ -245,7 +310,7 @@
 
   - name: attach managed policy to user
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/AWSDenyAll
@@ -258,7 +323,7 @@
 
   - name: ensure managed policy is attached to user (no change)
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/AWSDenyAll
@@ -272,7 +337,7 @@
   - name: attach different managed policy to user (check mode)
     check_mode: yes
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/ServiceQuotasReadOnlyAccess
@@ -286,7 +351,7 @@
 
   - name: attach different managed policy to user
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/ServiceQuotasReadOnlyAccess
@@ -300,7 +365,7 @@
 
   - name: Check first policy wasn't purged
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/ServiceQuotasReadOnlyAccess
@@ -315,7 +380,7 @@
 
   - name: Check that managed policy order doesn't matter
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/AWSDenyAll
@@ -330,7 +395,7 @@
 
   - name: Check that policy doesn't require full ARN path
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - AWSDenyAll
@@ -346,7 +411,7 @@
   - name: Remove one of the managed policies - with purge (check mode)
     check_mode: yes
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/ServiceQuotasReadOnlyAccess
@@ -360,7 +425,7 @@
 
   - name: Remove one of the managed policies - with purge
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/ServiceQuotasReadOnlyAccess
@@ -374,7 +439,7 @@
 
   - name: Check we only have the one policy attached
     iam_user:
-      name: '{{ test_user }}'
+      name: "{{ test_user }}"
       state: present
       managed_policy:
         - arn:aws:iam::aws:policy/ServiceQuotasReadOnlyAccess
@@ -388,9 +453,9 @@
 
   - name: ensure group exists
     iam_group:
-      name: '{{ test_group }}'
+      name: "{{ test_group }}"
       users:
-        - '{{ test_user }}'
+        - "{{ test_user }}"
       state: present
     register: iam_group
 
@@ -401,8 +466,8 @@
 
   - name: get info on IAM user(s) in group
     iam_user_info:
-      group: '{{ test_group }}'
-      name: '{{ test_user }}'
+      group: "{{ test_group }}"
+      name: "{{ test_user }}"
     register: iam_user_info
 
   - assert:
@@ -417,7 +482,7 @@
 
   - name: remove user from group
     iam_group:
-      name: '{{ test_group }}'
+      name: "{{ test_group }}"
       purge_users: True
       users: []
       state: present
@@ -425,8 +490,8 @@
 
   - name: get info on IAM user(s) after removing from group
     iam_user_info:
-      group: '{{ test_group }}'
-      name: '{{ test_user }}'
+      group: "{{ test_group }}"
+      name: "{{ test_user }}"
     register: iam_user_info
 
   - name: assert empty list of users for group are returned
@@ -436,9 +501,9 @@
 
   - name: ensure ansible users exist
     iam_user:
-      name: '{{ item }}'
+      name: "{{ item }}"
       state: present
-    with_items: '{{ test_users }}'
+    with_items: "{{ test_users }}"
 
   - name: get info on multiple IAM user(s)
     iam_user_info:
@@ -449,15 +514,15 @@
 
   - name: ensure multiple user group exists with single user
     iam_group:
-      name: '{{ test_group }}'
+      name: "{{ test_group }}"
       users:
-        - '{{ test_user }}'
+        - "{{ test_user }}"
       state: present
     register: iam_group
 
   - name: get info on IAM user(s) in group
     iam_user_info:
-      group: '{{ test_group }}'
+      group: "{{ test_group }}"
     register: iam_user_info
   - assert:
       that:
@@ -465,14 +530,14 @@
 
   - name: add all users to group
     iam_group:
-      name: '{{ test_group }}'
-      users: '{{ test_users }}'
+      name: "{{ test_group }}"
+      users: "{{ test_users }}"
       state: present
     register: iam_group
 
   - name: get info on multiple IAM user(s) in group
     iam_user_info:
-      group: '{{ test_group }}'
+      group: "{{ test_group }}"
     register: iam_user_info
   - assert:
       that:
@@ -480,7 +545,7 @@
 
   - name: purge users from group
     iam_group:
-      name: '{{ test_group }}'
+      name: "{{ test_group }}"
       purge_users: True
       users: []
       state: present
@@ -488,7 +553,7 @@
 
   - name: ensure info is empty for empty group
     iam_user_info:
-      group: '{{ test_group }}'
+      group: "{{ test_group }}"
     register: iam_user_info
   - assert:
       that:
@@ -496,7 +561,7 @@
 
   - name: get info on IAM user(s) after removing from group
     iam_user_info:
-      group: '{{ test_group }}'
+      group: "{{ test_group }}"
     register: iam_user_info
 
   - name: assert empty list of users for group are returned
@@ -506,7 +571,7 @@
 
   - name: remove group
     iam_group:
-      name: '{{ test_group }}'
+      name: "{{ test_group }}"
       state: absent
     register: iam_group
 
@@ -535,7 +600,7 @@
 
   - name: get info on IAM user(s) after deleting
     iam_user_info:
-      group: '{{ test_user }}'
+      group: "{{ test_user }}"
     ignore_errors: yes
     register: iam_user_info
 
@@ -557,16 +622,28 @@
       that:
         - not iam_user.changed
 
-  always:
-  - name: remove group
-    iam_group:
-      name: '{{ test_group }}'
-      state: absent
-    ignore_errors: yes
-
-  - name: remove ansible users
+  ## Test user password removal
+  - name: Delete IAM password
     iam_user:
-      name: '{{ item }}'
-      state: absent
-    with_items: '{{ test_users }}'
-    ignore_errors: yes
+      name: "{{ test_user3 }}"
+      remove_password: yes
+      state: present
+    register: iam_user_password_removal
+
+  - assert:
+      that:
+        - iam_user_password_removal is changed
+
+  always:
+    - name: remove group
+      iam_group:
+        name: "{{ test_group }}"
+        state: absent
+      ignore_errors: yes
+
+    - name: remove ansible users
+      iam_user:
+        name: "{{ item }}"
+        state: absent
+      with_items: "{{ test_users }}"
+      ignore_errors: yes