Updated: July 30, 2026

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Precious metals IRA early-withdrawal penalty estimator

Taking money out of a precious metals IRA before age 59 and a half triggers a 10% federal additional tax on top of ordinary income tax. State add-on taxes vary; check your state. The federal penalty is estimated below.

Amount withdrawn (USD) Your age Combined marginal income tax rate (optional %)

Estimate only, not tax advice. The 10% federal additional tax applies to early distributions before age 59 and a half; specific exceptions exist. Your state may add its own tax, and ordinary income tax applies separately. Source: IRS Publication 590-B. Consult a tax advisor.

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A Roth IRA is funded with after-tax dollars, grows tax-free, and pays qualified distributions tax-free at the federal level. Ohio residents ask a fair follow-up question. Does the state layer add tax on top of the federal treatment?

The short answer is no for qualified distributions, and yes for the earnings portion of a non-qualified distribution. Ohio conforms to federal AGI as the starting point for state taxable income, so the federal Roth treatment carries through unchanged.

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How Ohio conforms to federal Roth IRA treatment

Ohio Form IT-1040 line 1 begins with federal adjusted gross income. Additions and subtractions on the Schedule of Adjustments then produce Ohio taxable income. Roth IRA distributions are handled at the federal level under IRC section 408A(d), and the taxable amount (if any) flows into federal AGI before Ohio ever sees the number.

A qualified Roth distribution is federally excluded from gross income. Because it never enters federal AGI, it never enters Ohio taxable income. There is no separate Ohio subtraction because the exclusion happens upstream at the federal level.

A non-qualified Roth distribution is different. The basis portion (prior contributions and converted amounts) still comes out tax-free under the IRS ordering rules. The earnings portion is taxable at the federal level, enters federal AGI, and becomes taxable at the Ohio bracket rate on the same dollar.

What counts as a qualified Roth IRA distribution?

IRC section 408A(d)(2) sets two tests for a qualified distribution. Both must be satisfied. The first is the five-year holding period, measured from the first day of the tax year for which the first Roth contribution was made.

The second test is one of the following triggering events. The account owner reaches age 59 and a half. The account owner dies. The account owner becomes disabled within the meaning of IRC section 72(m)(7). The distribution is used for a first-time home purchase up to a $10,000 lifetime cap.

A distribution that fails either test is non-qualified. IRS ordering rules under IRC section 408A(d)(4) then apply. Contributions come out first and are tax-free. Converted amounts come out next; they are tax-free but may face the 10 percent penalty if the five-year conversion clock has not elapsed. Earnings come out last and are taxable.

An Ohio resident planning a distribution near the age 59 and a half boundary should confirm the five-year clock separately from the age test. The two clocks run independently and both must be satisfied for a fully qualified withdrawal.

Ohio individual income tax brackets applied to a taxable Roth earnings portion

The Ohio Department of Taxation publishes the annual bracket schedule at its Annual Tax Rates page. The most recent posted schedule (tax year 2025) applies zero percent on the first $26,050 of Ohio taxable nonbusiness income, 2.75 percent from $26,050 up to $100,000, and 3.125 percent above $100,000.

The prior tax year 2024 schedule used the same 0 and 2.75 percent brackets, with 3.50 percent on the amount above $100,000. Ohio residents should check the Annual Tax Rates page for the tax year 2026 schedule when it is published, because bracket thresholds and the top rate can shift year over year.

For a retired Ohio resident with $60,000 of federal AGI (all from a non-qualified Roth earnings portion), the 2025 bracket math produces roughly $935 of Ohio income tax before any credits. The Ohio retirement income credit and senior citizen credit under Ohio Revised Code 5747.055 and 5747.05 may reduce that liability further.

Ohio retirement income credit and senior citizen credit

Ohio Revised Code section 5747.055 authorizes a nonrefundable retirement income credit against Ohio individual income tax. The credit is scaled by the amount of retirement income included in Ohio adjusted gross income and reported on the IT-1040 Schedule of Credits.

Roth IRA earnings that are taxable at the federal level count as retirement income for the credit computation. So does a distribution from a traditional IRA, a 401(k), a 403(b), or a self-directed gold IRA. The current-year credit table and amount ceiling are printed in the IT-1040 instructions booklet issued each January by the Ohio Department of Taxation.

Ohio Revised Code section 5747.05(C) adds a separate lump-sum senior citizen credit for taxpayers age 65 or older during the tax year. This credit is claimed on the same Schedule of Credits and is available in the year the taxpayer first turns 65. The retirement income credit and the senior citizen credit stack against the same Ohio tax liability.

Federal early-distribution penalty and Ohio’s non-parallel treatment

A pre-age-59-and-a-half Roth withdrawal that includes a taxable earnings portion is subject to the 10 percent federal additional tax under IRC section 72(t). Ohio does not impose a parallel state-level early-distribution penalty. The Ohio tax on the same dollar is only the bracket rate applied to Ohio taxable income.

Federal statutory exceptions to the 10 percent penalty are listed in IRC section 72(t)(2). Common exceptions cover unreimbursed medical expenses above 7.5 percent of AGI, health insurance premiums during periods of unemployment, and qualified higher education expenses. A first-time home purchase up to $10,000 lifetime is also an exception. Others include a qualified birth or adoption up to $5,000 per parent per event, and substantially equal periodic payments under IRC 72(t)(2)(A)(iv).

The 5-year conversion clock under IRC section 408A(d)(3)(F) is a separate rule. A converted amount withdrawn within five years of the conversion is subject to the 10 percent penalty even if the owner is over age 59 and a half. Ohio’s non-penalty position at the state level applies to that conversion clock case as well.

2026 planning notes for an Ohio Roth IRA holder

The IRS confirmed the 2026 IRA contribution limits on its Retirement Topics page. The limit is $7,500 for account owners under age 50 and $8,600 for those age 50 or older (a $1,100 catch-up). The Ohio side of the return does not change with the federal limit because the state uses federal AGI as the starting point.

Roth IRAs have no required minimum distributions during the owner’s lifetime. That is a federal Roth rule under IRC section 408A(c)(5) and is preserved by IRS Publication 590-B. Traditional IRAs and self-directed gold IRAs remain subject to the SECURE 2.0 required beginning date of age 73 for owners born between 1951 and 1959, and age 75 for owners born in 1960 or later.

Inherited Roth IRAs are a different matter. A non-spouse beneficiary who inherits a Roth IRA in 2026 is subject to the SECURE Act 10-year rule under IRC 401(a)(9)(H). The full inherited balance must be distributed by December 31 of the tenth year following the year of death. Ohio applies the bracket rate only to the earnings portion that is federally taxable inside the 10-year window.

Ohio has no state estate tax. The Ohio estate tax was repealed for decedents dying on or after January 1, 2013 by House Bill 153. The federal estate-tax regime under IRC section 2001 still applies to a Roth IRA balance that pushes a decedent’s gross estate above the federal exclusion.

Common mistakes Ohio Roth IRA holders make

Assuming a Roth distribution is always tax-free. The tax-free treatment requires both the five-year holding period and one of the four qualifying events (age 59 and a half, death, disability, first-time home up to $10,000). A distribution that fails either test can produce a taxable earnings portion at the federal level and a matching bracket hit in Ohio.
Confusing the five-year contribution clock with the five-year conversion clock. These are separate under IRC 408A(d)(2) and 408A(d)(3)(F). A Roth conversion completed at age 60 still has a fresh five-year window for the converted amount, distinct from the contribution clock that may have already elapsed.
Missing the Ohio retirement income credit on the Schedule of Credits. A taxable Roth earnings portion counts as retirement income for ORC 5747.055 purposes. Skipping the credit line leaves state tax dollars on the table.
Ignoring the SECURE Act 10-year rule on an inherited Roth IRA. A non-spouse beneficiary who leaves the balance untouched until year 10 faces a compressed distribution schedule and possibly larger single-year Ohio bracket exposure than a level-payment plan across the full 10 years.
Skipping dealer vetting on a self-directed Roth gold IRA. Ohio’s tax question is one layer. The dealer, custodian, and depository stack is a separate layer. Check this dealer against the 2026 OPRS list before any Roth self-directed IRA custodian conversation.

Are there states that do not tax Roth IRAs at all?

Nine states impose no broad-based individual income tax on wages or on IRA distributions: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire. New Hampshire historically taxed interest and dividends but that tax phased out effective tax year 2025 under Chapter 231 of the 2021 New Hampshire session laws.

Ohio is not in this group. Ohio taxes retirement income (including any Roth IRA earnings portion that is federally taxable) at the applicable bracket rate, offset by the retirement income credit and the senior citizen credit under ORC 5747.055 and 5747.05.

What happens if I move from a high-tax state to Ohio and take a Roth distribution?

The federal Pension Source Tax Act of 1996 (4 U.S.C. section 114) blocks the former state from taxing retirement income paid after Ohio residency is established. The protection covers Roth IRA distributions, traditional IRA distributions, 401(k), 403(b), and defined benefit pension income.

The Ohio side of the return uses federal AGI as the starting point. Document the move (voter registration, driver’s license, address on the IRA custodian’s file) so the former state cannot assert continuing residency during a lookback audit.

Your next step on an Ohio Roth IRA distribution decision

The tax question splits cleanly. A qualified Roth distribution is federally and state tax-free. A non-qualified Roth distribution is taxable at the federal level on the earnings portion, and the same earnings portion is taxable in Ohio at the bracket rate applicable to Ohio taxable income.

For an Ohio resident considering a self-directed Roth gold IRA (funded from a rolled 401(k), 403(b), or existing Roth IRA), the dealer-selection layer sits alongside the tax layer. 3 of 27+ gold IRA dealers reviewed by OPRS make the 2026 trusted list. The custodian’s Form 1099-R coding, distribution mechanics, and buyback pricing determine whether the Roth distribution paperwork is clean or messy.

Get the Augusta company-comparison checklist

The free company-comparison checklist walks through the custodian, depository, Form 1099-R coding, and distribution mechanics that any Roth IRA distribution has to coordinate with. It is the higher-intent asset for screening any single dealer against the OPRS four-marker trust-signal stack.

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OPRS may receive compensation when readers proceed. Editorial selection is independent. Updated July 2026.

Does Ohio Tax Roth IRA Distributions?