Virginia Gold IRA: State Tax Rules and 2026 Considerations

Updated: July 30, 2026

OPRS may receive compensation when readers open an account through partner links on this page. Our analysis is based on independent research, BBB data, and IRS publications.

A Virginia resident who funds a self-directed gold IRA from a rolled retirement balance faces a layered state-tax question at distribution. The federal tax under IRC Section 72 runs first. Virginia state tax under Va. Code Section 58.1-322.02 runs on top through the federal-AGI flow-through. Virginia has no city-level or county-level income tax layer comparable to New York City or Yonkers, which keeps the state-side calculation clean for a Fairfax, Arlington, Henrico, or Virginia Beach resident.

Element I is the absence of a Virginia general pension exclusion. Virginia does not mirror the New York 20,000-dollar Section 612(c)(3-a) subtraction or the Pennsylvania full IRA exemption. The closest relief is the Va. Code Section 58.1-322.03(5) Age Deduction, capped at 12,000 dollars per individual age 65 and older, subject to a steep 1-for-1 AGI phase-out. A self-directed IRA distribution flows into Virginia taxable income at the full federally taxable amount.

See the 2026 dealers OPRS clears and the ones we warn against before any distribution is initiated.

Element II is the Virginia bracket structure. The four brackets are 2 percent under 3,000 dollars, 3 percent on the next 2,000, 5 percent on the next 12,000, and 5.75 percent above 17,000 dollars. The brackets have not been indexed since 1990, which means most retirees with a meaningful IRA balance pay a marginal 5.75 percent on additional distribution dollars.

Element III is the residency rule. Va. Code Section 58.1-302 treats any person domiciled in Virginia at any time during the taxable year as a resident. The same statute separately treats any person who maintains a place of abode in Virginia for an aggregate of more than 183 days as a resident, regardless of declared domicile elsewhere. Either prong is sufficient.

Element IV is the federal mechanic stack: IRC Section 72(t), the SECURE 2.0 RMD ages 73 and 75, and IRC Section 3405 withholding defaults. Those apply at the federal level regardless of residency.

How Virginia taxes IRA distributions: the federal-AGI flow-through

Va. Code Section 58.1-321 defines Virginia adjusted gross income as federal adjusted gross income with state-specific additions and subtractions. The federal taxable IRA distribution amount on Form 1099-R Box 2a flows into federal adjusted gross income on Form 1040 line 4b, then into Virginia Form 760 line 1. The federal flow-through is the starting point.

Virginia does not provide a general IRA or private-pension exclusion at the state level. Va. Code Section 58.1-322.02(11) provides a narrow IRA-related subtraction only for the portion of distributions where the underlying contributions were already subjected to income tax in another state. The rule is a credit-for-double-tax mechanic, not a general exclusion. A Virginia-resident retiree who contributed to a 401(k) or IRA while working in Virginia receives no general state-level subtraction at distribution.

Three meaningful state-level retirement-income exemptions sit alongside the IRA flow-through. The first is the Social Security exemption under Va. Code Section 58.1-322.02(3). Virginia fully exempts Title II Social Security benefits from Virginia income tax. The exemption has no AGI phase-out and no dollar cap. A Virginia retiree who receives 30,000 dollars of Social Security benefits subtracts the federally taxable portion of those benefits from Virginia taxable income in full.

The second is the disability income subtraction under Va. Code Section 58.1-322.02(4). Virginia allows up to 20,000 dollars of disability income as defined in IRC Section 22(c)(2)(B)(iii). The subtraction is not combinable with the Age Deduction in the same taxable year. A taxpayer who claims the Age Deduction under Section 58.1-322.03(5) cannot also claim the disability subtraction under Section 58.1-322.02(4).

The third is the military benefits subtraction under Va. Code Section 58.1-322.02(18). For taxable years beginning on or after January 1, 2025, Virginia exempts up to 40,000 dollars of military benefits, with no age restriction. The Northern Virginia federal workforce overlap means a meaningful share of Virginia retirees draw military retirement income that qualifies for the full 40,000-dollar exemption.

The state-tax bracket structure under Va. Code Section 58.1-320 is flat above 17,000 dollars. The 2 percent bracket covers income under 3,000 dollars. The 3 percent bracket covers 3,000 to 5,000 dollars. The 5 percent bracket covers 5,000 to 17,000 dollars. The 5.75 percent bracket covers all income above 17,000 dollars. The brackets are not indexed and have remained at these dollar thresholds since taxable year 1990.

A 65-year-old single Virginia resident with a 50,000-dollar traditional IRA distribution and no other income pays roughly 1,325 dollars of Virginia income tax. The starting point is federal AGI of 50,000 dollars. The Age Deduction subtracts 12,000 dollars (no phase-out at the 50,000 single threshold). The Virginia standard deduction subtracts 8,750 dollars. The personal exemption and aged exemption subtract 1,730 dollars combined. Virginia taxable income lands at approximately 27,520 dollars.

The tax stack on that 27,520 dollars is 60 dollars at 2 percent, 60 dollars at 3 percent, 600 dollars at 5 percent, and 605 dollars at 5.75 percent on the 10,520-dollar amount above the 17,000-dollar threshold. The total rounds to approximately 1,325 dollars.

The Age Deduction: Virginia’s narrow window for IRA relief

The Age Deduction under Va. Code Section 58.1-322.03(5) is the only Virginia state-level subtraction that meaningfully shields IRA distribution dollars from Virginia tax. The mechanic has two cohorts. Subdivision (5)(a) provides an unconditional 12,000-dollar deduction for individuals born on or before January 1, 1939. Subdivision (5)(b) provides a 12,000-dollar deduction for individuals born after January 1, 1939 who have attained age 65, subject to an AGI phase-out.

The phase-out is steep. The 12,000-dollar deduction is reduced 1 dollar for every 1 dollar that the taxpayer’s adjusted federal AGI exceeds 50,000 dollars for a single taxpayer or 75,000 dollars for a married taxpayer. The reduction runs over a 12,000-dollar window. A single Virginia retiree with adjusted federal AGI of 56,000 dollars retains 6,000 dollars of Age Deduction. The same retiree at 62,000 dollars of adjusted federal AGI loses the deduction entirely.

“Adjusted federal AGI” for this phase-out means federal AGI minus the federally taxable portion of Title II Social Security benefits and other federally taxable benefits under IRC Section 86. Consider a Virginia retiree with 40,000 dollars of IRA distribution and 25,000 dollars of Social Security benefits (federally taxable at 85 percent under Section 86). Federal AGI lands at approximately 61,250 dollars. Adjusted federal AGI for the Age Deduction calculation lands at 40,000 dollars. The full 12,000-dollar deduction is preserved.

The married-joint phase-out window is wider. Two Virginia retirees both age 65 with combined federal AGI of 75,000 dollars retain the full 24,000-dollar combined Age Deduction (12,000 per individual). The deduction reduces 1 dollar for every 1 dollar above 75,000 dollars of combined adjusted federal AGI. At 87,000 dollars, the combined Age Deduction is fully eliminated.

The planning implication for a Virginia retiree near the phase-out threshold is direct. A 5,000-dollar IRA distribution that pushes adjusted federal AGI from 49,000 to 54,000 dollars single phases out 4,000 dollars of Age Deduction. The marginal Virginia tax on that 5,000-dollar distribution stacks two components. The first is 5.75 percent on the gross distribution itself. The second is 5.75 percent on the 4,000-dollar deduction lost. The effective marginal rate runs about 10.35 percent on the incremental distribution dollar.

Check this dealer against the 2026 OPRS list before sizing any pre-RMD distribution that crosses the phase-out window.

Federal mechanics that still apply: 72(t), RMDs, and withholding

The federal tax mechanics on a gold IRA distribution run independently of Virginia residency. The IRC Section 72(t) 10 percent additional tax on pre-59-and-a-half distributions applies in full. The federal exceptions are the same in every state. They include medical expenses above 7.5 percent of AGI, qualified higher education expenses, first-time homebuyer (10,000 dollars lifetime), and substantially equal periodic payments under Section 72(t)(2)(A)(iv).

The SECURE Act 2.0 amended IRC Section 401(a)(9). The required minimum distribution age is 73 for participants born between 1951 and 1959. It is 75 for participants born in 1960 and after. The RMD calculation uses the Uniform Lifetime Table in IRS Publication 590-B Appendix B. Virginia does not impose a parallel state-level RMD requirement because the state simply taxes whatever is federally reported on Form 1099-R.

The default federal withholding on a traditional IRA distribution is 10 percent under IRC Section 3405(b)(1) unless the participant elects out on IRS Form W-4R. Virginia withholding on a pension or IRA distribution is voluntary. The participant may elect Virginia withholding by submitting Form VA-4P to the custodian. No mandatory state withholding applies if the participant declines.

An indirect rollover under IRC Section 408(d)(3) triggers a mandatory 20 percent federal withholding from an employer plan to the participant before re-deposit within 60 days. A Virginia resident pays 20 percent to the IRS during the 60-day window. A direct trustee-to-trustee transfer avoids the withholding entirely. The state-tax dimension is identical for both transfer types because Virginia does not impose its own mandatory withholding on pension or IRA distributions.

The federally taxable amount on an in-kind distribution of physical metal is the fair market value of the metal on the distribution date. The custodian reports the FMV on Form 1099-R Box 1. Virginia taxes the same FMV figure flowed through federal AGI. A Roth IRA qualified distribution remains federally tax-free and Virginia tax-free under the basis-ordering rules of IRC Section 408A(d).

The 183-day residency rule and the snowbird question

Va. Code Section 58.1-302 defines a Virginia resident on two alternative tests. The first test is domicile: a person domiciled in Virginia at any time during the taxable year is a Virginia resident for the period of domicile. The second test is the place-of-abode plus 183-day test. A person who maintains a place of abode in Virginia for an aggregate of more than 183 days of the taxable year is a Virginia resident regardless of declared domicile elsewhere.

The Virginia rule is broader than the New York and Vermont statutes because the place of abode does not need to be “permanent.” A rental can trigger the actual-residence prong. A vacation home with year-round access can trigger it. A relative’s residence with a regular bedroom can trigger it. Any dwelling that the taxpayer occupies for more than 183 aggregated days qualifies. The day count is the audit battleground.

An actual resident pays Virginia income tax on worldwide income, not just Virginia-source income. A 65-year-old Florida snowbird who spends 200 days at a Norfolk shoreline rental and takes a 100,000-dollar IRA distribution paid in February while in Tampa still owes the full Virginia state tax on the distribution. No state-level pension exclusion shields the IRA distribution. The Age Deduction and standard deduction apply.

The audit defense documentation file for a Virginia snowbird should include a contemporaneous day-by-day diary, primary residence utility bills, credit card statements, medical appointments outside Virginia, and EZ-Pass or other travel records. Virginia Tax Bulletin 14-7 and Public Document 12-105 provide the agency’s published guidance on residency determinations. The audit lookback window for residency cases is typically three tax years.

The federal Pension Source Tax Act of 1996 at 4 U.S.C. Section 114 blocks Virginia from taxing IRA distributions paid to a non-resident. The protection applies once the participant is cleanly a non-Virginia resident under both the domicile and place-of-abode tests. A former Virginia resident who relocates to Florida (no state income tax) and severs the Virginia place of abode pays zero Virginia tax on IRA distributions taken after the residency change.

Depository, custodian, and shipping considerations from Virginia

Virginia does not host an IRS-approved precious metals depository. A Virginia-resident self-directed gold IRA participant uses one of the standard IRS-approved depositories located in other states. Delaware Depository (Wilmington), International Depository Services (Dallas and Delaware), Brink’s Global Services USA (multiple regional vaults), HSBC Bank USA (New York City), and CNT Depository (Bridgewater, Massachusetts) are the standard choices for a Virginia account.

The depository selection is set by the custodian’s standing contract, not by the participant directly. The state-tax treatment of the IRA distribution does not change based on the depository location. Va. Code Section 58.1-322.02 taxes the distribution on the federal taxable amount, not on where the underlying metal was vaulted.

An in-kind distribution to a Virginia-resident participant ships from the depository via insured armored carrier. Standard carriers include Brink’s and Loomis. The shipping cost is borne by the participant and is not deductible because the distribution itself is the taxable event. Shipping fees commonly run from 150 to 500 dollars per shipment depending on insured value and destination ZIP code.

Northern Virginia destinations on the Interstate 66 and Interstate 95 corridor (Fairfax, Arlington, Alexandria, Prince William) receive next-day delivery from Delaware Depository or the HSBC New York vault. Richmond, Hampton Roads, Virginia Beach, and Newport News receive next-day delivery from Mid-Atlantic origin vaults. Roanoke, Lynchburg, and the Shenandoah Valley typically receive next-day or two-day service depending on insured value.

Southwest Virginia rural ZIP codes (Lee, Wise, Dickenson, Buchanan counties) and Eastern Shore destinations may require an extra day or armored connector. The custodian should confirm shipping availability for the actual delivery address at account opening, not at distribution.

An in-cash distribution avoids the shipping question entirely. The depository sells the metal at the spot price on the distribution date. The cash proceeds are wired or sent by ACH to the participant’s bank. The federally taxable amount is the cash distribution amount on Form 1099-R Box 1. The mechanic is identical to any other IRA cash distribution and feeds the same Section 58.1-322.02 state tax calculation.

Virginia estate tax and gold IRA beneficiary planning

Virginia repealed its state estate tax effective July 1, 2007 under Acts of Assembly 2006 Chapter 4. A Virginia decedent owes no Virginia estate tax on a gold IRA balance, regardless of the gross estate size. Virginia also imposes no state-level inheritance tax. The estate-tax landscape for a Virginia gold IRA participant is dramatically simpler than in Maryland (state estate tax with a 5,000,000-dollar exclusion), Massachusetts (1,000,000-dollar exclusion with a graduated rate), or Vermont (16 percent flat above 5,000,000 dollars).

The federal estate-tax regime under IRC Section 2001 runs independently. The federal exclusion stood at 13,990,000 dollars per individual in 2025 and is set to sunset on January 1, 2026, to approximately 7,000,000 dollars after inflation adjustment. A Virginia decedent with a gold IRA balance that pushes the gross estate above the post-sunset federal exclusion should review beneficiary designations and consider lifetime gifting strategies with an estate-planning attorney. The Virginia state side carries no parallel exposure.

An IRA passed to a designated beneficiary at the participant’s death generally avoids probate but counts toward the gross estate for federal estate-tax purposes. The SECURE Act 10-year payout rule applies to non-spouse beneficiaries who inherit the IRA. The federal estate-tax liability is calculated on the IRA fair market value at the date of death, not on a stepped-up basis (IRAs do not receive a basis step-up under IRC Section 1014(c)). Virginia adds no separate estate-tax layer.

A Virginia decedent with an 8,000,000-dollar gross estate including a 2,000,000-dollar gold IRA balance pays zero Virginia estate tax. The same decedent in Maryland would face Maryland state estate tax on the portion above the 5,000,000-dollar Maryland exclusion. The Virginia repeal makes the state a meaningfully favorable jurisdiction for a retiree with a large IRA balance who is choosing between mid-Atlantic destinations for retirement domicile.

Common mistakes Virginia retirees make on a gold IRA

1. Assuming Virginia has a New York-style 20,000-dollar pension exclusion. It does not. Va. Code Section 58.1-322.02 provides only the Social Security exemption (full), the 20,000-dollar disability income subtraction (not combinable with the Age Deduction), and the up-to-40,000-dollar military benefits subtraction. The Age Deduction under Section 58.1-322.03(5) is the only state-level relief that reaches a private-sector IRA distribution, capped at 12,000 dollars per individual age 65 and older with a 1-for-1 AGI phase-out above 50,000 single (75,000 married).
2. Missing the 1-for-1 Age Deduction phase-out. The Section 58.1-322.03(5) phase-out window is only 12,000 dollars wide. A retiree with adjusted federal AGI between 50,000 and 62,000 dollars single faces an effective marginal Virginia rate of approximately 10.35 percent on incremental IRA distribution dollars (5.75 percent on the distribution plus 5.75 percent on the lost deduction). The marginal rate falls back to 5.75 percent above 62,000 dollars single once the deduction is fully eliminated.
3. Confusing the disability income subtraction with a broader retirement-income exemption. Va. Code Section 58.1-322.02(4) caps the disability subtraction at 20,000 dollars and limits it to disability income as defined in IRC Section 22(c)(2)(B)(iii). A retiree who claims the Age Deduction under Section 58.1-322.03(5) cannot also claim the disability subtraction under Section 58.1-322.02(4) in the same taxable year. The 65-and-over retiree should model both paths before electing the higher-value subtraction.
4. Triggering the place-of-abode prong by underestimating the day count. A snowbird who spends more than 183 aggregated days at a Norfolk, Williamsburg, or Charlottesville rental becomes a Virginia actual resident regardless of Florida domicile. The audit defense requires a contemporaneous day count. EZ-Pass records, credit-card statements, and medical-appointment records are the standard evidence. Virginia Tax Bulletin 14-7 governs the documentation expectations.
5. Overlooking the 40,000-dollar military benefits subtraction phase-in. The Va. Code Section 58.1-322.02(18) subtraction climbed from 10,000 dollars in 2022 to 40,000 dollars in 2025 and after. A retired Navy chief or Air Force colonel in Hampton Roads or Northern Virginia drawing military retirement income should verify that the custodian and tax preparer applied the 40,000-dollar cap for the current taxable year, not the earlier phase-in amount.
6. Missing the SECURE 2.0 RMD age cohort. A 73-year-old participant born in 1953 falls under the age-73 RMD rule. A 71-year-old participant born in 1955 also falls under the age-73 rule (RMDs start at age 73 in this cohort). A 65-year-old participant born in 1961 falls under the age-75 rule. The custodian’s automated calculation should reflect the birth-year cohort, not a generic 73 or 75.
7. Skipping dealer vetting because the state-tax math looks favorable. Virginia’s flat 5.75 percent top bracket and the absence of a state estate tax make the planning side feel light. The dealer-selection layer still matters at distribution time. The custodian, depository, fee schedule, and buyback policy determine the operational quality of the account through retirement. Check any dealer against the 2026 OPRS list before signing.

What changed in 2026 for a Virginia gold IRA participant

The federal contribution and distribution rules continue to evolve. The IRA contribution limit for 2025 was 7,000 dollars under age 50 and 8,000 dollars at age 50 and older with the catch-up under IRC Section 219(b)(5). The 2026 figures are released by IRS Revenue Procedure for the 2026 tax year. The Virginia Age Deduction thresholds under Section 58.1-322.03(5) and the bracket dollars under Section 58.1-320 are not indexed and stay at the statutory amounts unless the General Assembly amends them.

The Virginia standard deduction stepped up under Va. Code Section 58.1-322.03(1)(b)(v) to 8,750 dollars single and 17,500 dollars married joint for taxable years beginning on or after January 1, 2025 and before January 1, 2027. The amount reverts to 3,000 dollars single and 6,000 dollars married joint for taxable years beginning January 1, 2027 unless the General Assembly extends the elevated amount. The reversion materially changes the after-tax math on an IRA distribution for taxable year 2027 and after.

The SECURE 2.0 Roth catch-up rule under Section 603 takes effect for tax years beginning after December 31, 2025. Participants age 50 and older with prior-year wages above 145,000 dollars (indexed) must make catch-up contributions on a Roth basis only. The rule applies to 401(k), 403(b), and 457(b) plans. The IRA catch-up rule under Section 219(b)(5)(B) is not affected by the change.

The federal estate-tax exclusion is set to sunset from the doubled level on January 1, 2026. The pre-sunset exclusion was 13,990,000 dollars per individual in 2025. The post-sunset exclusion is projected at approximately 7,000,000 dollars per individual after inflation adjustment. Virginia repealed its state estate tax in 2007 and carries no parallel state-level exclusion or rate. A Virginia gold IRA holder evaluating estate-planning exposure runs the federal calculation only on the state side of the analysis.

The Virginia Retirement System (VRS) administers defined benefit pensions for state and local government employees and certain teachers. VRS pension payments are federally taxable and flow through federal AGI to Virginia taxable income. The Age Deduction under Section 58.1-322.03(5) is the only state-level subtraction that reaches a VRS pension.

A VRS retiree who rolls a vested balance to a self-directed gold IRA moves the asset class without changing the federal taxability. The Age Deduction remains available on subsequent distributions under the same Section 58.1-322.03(5) rules.

A Virginia-resident gold IRA participant carries a moderate state-tax matrix relative to Mid-Atlantic and Southeast peers. State tax flows through federal AGI under a flat 5.75 percent top bracket above 17,000 dollars. The Age Deduction provides a narrow 12,000-dollar carve-out at age 65 and older subject to a steep 1-for-1 phase-out.

The full Social Security exemption and the 40,000-dollar military benefits subtraction shelter the most common retirement income streams. The repealed state estate tax removes a meaningful planning consideration that still binds Maryland and Massachusetts neighbors. The dealer-selection layer still carries operational weight independent of the tax-planning layer.

The dealer-side trust signal stack that OPRS uses includes four markers that travel across all 50 states. The markers are listed below.

• Money Magazine Best Overall Gold IRA Company (2022 to 2026)
• Investopedia Most Transparent Gold IRA Company (2022 to 2026)
• BBB A+ Rating with Zero Complaints (accredited since 2014)
• Education-First Process with non-commissioned customer success agents

The free Augusta company-comparison checklist walks through the custodian, depository, distribution-code, and Form 1099-R coding mechanics that a Virginia-resident distribution coordinates with. The checklist is the higher-intent asset for screening any single dealer against the four-marker trust-signal stack at the pre-distribution planning moment.

Does Virginia tax traditional IRA distributions?

Yes. Virginia taxes traditional IRA distributions as ordinary income through the federal-AGI flow-through under Va. Code Section 58.1-321 and Section 58.1-322.02. The federal taxable amount on Form 1099-R Box 2a flows into federal adjusted gross income on Form 1040 line 4b, then into Virginia Form 760 line 1. Virginia brackets of 2 percent, 3 percent, 5 percent, and 5.75 percent above 17,000 dollars apply.

Virginia provides no general IRA or private-pension exclusion comparable to the New York 20,000-dollar Section 612(c)(3-a) subtraction. The only state-level subtraction that meaningfully reaches an IRA distribution is the Age Deduction under Section 58.1-322.03(5), capped at 12,000 dollars per individual age 65 and older with a 1-for-1 AGI phase-out above 50,000 single (75,000 married).

Are VRS pensions taxable in Virginia?

Yes. Virginia Retirement System (VRS) pension payments are federally taxable as ordinary income and flow through federal AGI to Virginia taxable income. The only state-level subtraction that reaches a VRS pension is the Age Deduction under Va. Code Section 58.1-322.03(5), capped at 12,000 dollars per individual age 65 and older with a 1-for-1 phase-out above 50,000 single (75,000 married).

A retired Virginia teacher with a 30,000-dollar VRS pension and 10,000 dollars of Social Security benefits has federal AGI of approximately 38,500 dollars (assuming 85 percent of Social Security is federally taxable). Adjusted federal AGI for the Age Deduction phase-out is 30,000 dollars, well below the 50,000-dollar single threshold. The full 12,000-dollar Age Deduction is available. The Social Security portion is fully exempt at the Virginia level under Section 58.1-322.02(3).

If I move from Virginia to Florida, when does my Virginia tax stop?

Virginia state income tax stops when both the domicile prong and the place-of-abode plus 183-day prong under Va. Code Section 58.1-302 are broken. Establishing Florida domicile breaks the first prong. Selling, renting out, or otherwise giving up regular access to a Virginia dwelling for more than 182 aggregated days breaks the second prong. Both must fail for clean non-residency.

The federal Pension Source Tax Act of 1996 at 4 U.S.C. Section 114 blocks Virginia from taxing IRA distributions paid to a non-resident. The protection applies once Florida or another state’s residency is established and Virginia residency is cleanly broken on both prongs.

The participant should retain documentation of the move: voter registration date, Florida driver’s license issue date, deed or lease records, and a contemporaneous day-by-day diary. The Virginia audit lookback window for residency cases is typically three tax years.

Does Virginia impose a state-level early-distribution penalty?

No. Virginia does not impose a state-level additional tax on early IRA distributions parallel to the federal IRC Section 72(t) 10 percent additional tax. The federal 10 percent additional tax under Section 72(t) still applies in full to a pre-59-and-a-half distribution from a Virginia-resident traditional IRA.

A Virginia-resident participant who takes a pre-59-and-a-half distribution from a traditional IRA pays the federal 10 percent additional tax plus Virginia state income tax at the marginal bracket. The federal Section 72(t)(2) exceptions for medical expenses, qualified higher education, first-time homebuyer (10,000 dollars lifetime), and substantially equal periodic payments apply to remove the federal additional tax. None of the exceptions require Virginia action because Virginia imposes no parallel state-level penalty.

Does Virginia have a state estate tax on a gold IRA balance?

No. Virginia repealed its state estate tax effective July 1, 2007 under Acts of Assembly 2006 Chapter 4. A Virginia decedent owes no Virginia estate or inheritance tax on a gold IRA balance, regardless of the gross estate size. Virginia is the most estate-tax-favorable jurisdiction in the Mid-Atlantic for a retiree with a meaningful IRA balance.

The federal estate tax under IRC Section 2001 still applies on the portion of the gross estate above the federal exclusion. The 2025 federal exclusion was 13,990,000 dollars per individual. The exclusion is projected to sunset on January 1, 2026 to approximately 7,000,000 dollars per individual after inflation adjustment. Virginia adds no state-level layer.

Sources cited

1. Virginia Department of Taxation (official site)
2. Va. Code Section 58.1-302 (Virginia income tax definitions including residency)
3. Va. Code Section 58.1-320 (Virginia personal income tax rates and brackets)
4. Va. Code Section 58.1-322.02 (Virginia subtractions including Social Security, disability, military benefits)
5. Va. Code Section 58.1-322.03 (Virginia deductions including the Age Deduction)
6. Virginia Department of Taxation, Individual Income Tax Filing and Form 760 instructions
7. IRC Section 72, Annuities and Certain Proceeds of Endowment and Life Insurance Contracts
8. IRC Section 72(t), Additional Tax on Early Distributions from Qualified Retirement Plans
9. IRC Section 408, Individual Retirement Accounts and IRC Section 408(m) IRS-approved metals
10. IRC Section 408A, Roth IRA distribution rules
11. IRC Section 3405, Withholding on Pension and Annuity Distributions
12. 4 U.S.C. Section 114, Pension Source Tax Act of 1996
13. IRC Section 2001, Imposition and Rate of Federal Estate Tax
14. IRC Section 86, Social Security and Tier 1 Railroad Retirement Benefits
15. IRC Section 22, Credit for the Elderly and Permanently Disabled (referenced by Va. Code Section 58.1-322.02(4))
16. IRS Publication 590-B, Distributions from Individual Retirement Arrangements
17. Virginia Retirement System (VRS) official site

More on OPRS

• North Carolina gold IRA state tax rules
• Maryland gold IRA state tax rules
• Tennessee gold IRA state tax rules
• Run the 2026 dealer screen before any custodian conversation