State Tax Information

Please note that state taxation of Roth IRAs is voluntary.

If your state of residence is Your option for State Tax withholding
AK, FL, HI, MS, NH, NV, SD, TN, TX, WA, WY

State tax withholding is NOT AVAILABLE on your IRA distributions, even if your state has state income taxes.

AR, IA, KS, MA, ME, OK, OR, VT, CA, DE, NC

If YOU DO NOT ELECT FEDERAL TAX WITHHOLDING, you may optionally elect to have state tax withholding apply.

If YOU ELECT FEDERAL TAX WITHHOLDING, state tax withholding will be applied (CA, DE, OR and NE residents may NOT elect to have state tax withheld when federal tax is elected).

If state tax is applied, it will need to meet your state's minimum required withholding rate (see table below for additional information).

Residents of all other states and the District of Columbia

You may elect VOLUNTARY state income tax withholding. You must provide a whole percentage to be applied for tax withholding.

State Minimum Required Rates
AR 3% of gross distribution amount (0% if distribution is under $200,000)
IA 3% of gross distribution amount (0% if distribution <= $3,000)
KS 5% of gross distribution amount (0% if distribution <= $10.00)
MA 5.3% of gross distribution amount
ME 5% of gross distribution amount
OK 5.3% of gross distribution amount
OR 8% of gross distribution amount (0% if withholding is under $10.00)
VT You must withhold 27% of the federal income tax withheld
CA 10% of Federal tax withheld
DE Delaware has a graduated tax rate ranging from 2.2% to 5.55% for income under $60,000 and 5.95% for income of $60,000 or over.
NC 4% of gross distribution amount (0% if gross annualized distribution <= $200.00/year)

Please contact your tax advisor for any questions about state tax withholding. While we attempt to keep this information current, state tax law is subject to change and may impact the accuracy of this information.