Ohio Tax Strategy: Buckeye State Freedom Planning
Ohio has a progressive income tax up to 3.5% plus local taxes up to 3%. Combined with federal rates, over 43% can go to government. Section 7702 provides complete freedom.
The Ohio Tax Challenge
Ohio's state rate of 3.5% seems low, but local income taxes up to 3% add significantly. Combined with federal taxes, the burden is substantial.
✅ The Good News
- State rate capped at 3.5%
- Strong Fortune 500 presence
- Growing Columbus economy
⚠️ The Challenge
- Local income taxes add up to 3% more
- Combined state/local/federal can exceed 43%
- Most cities impose local income tax
Ohio Tax By The Numbers
Section 7702: Your Tax Freedom Solution
Section 7702 of the IRS tax code creates a powerful opportunity: access your retirement funds through policy loans that are completely tax-free—at both federal and state levels. For Ohio residents, this means escaping both the state tax burden and federal taxation entirely.
Federal Tax-Free
Policy loans bypass federal income tax entirely. No 22-37% federal tax on your retirement income.
State Tax-Free
No Ohio state income tax on policy loans. Your retirement income stays tax-free at the state level.
Ohio Professionals We Typically Serve
Fortune 500 Executives
Kroger, P&G, and corporate leadership
Cleveland Clinic Professionals
World-class medical specialists
Professional Athletes
Bengals, Browns, Cavaliers, Blue Jackets
Manufacturing Leaders
Industrial business owners and executives
Ohio Areas We Serve
Matt Nye's Recommendation
"Ohio surprises people. The state rate of 3.5% seems reasonable—until you add local income tax. Columbus, Cleveland, Cincinnati—they all add 2-3% more. Suddenly you are looking at 6.5% to the state and city."
"Combined with federal taxes, Fortune 500 executives, Cleveland Clinic surgeons, and business owners lose over 43% of their 401(k) to government."
"Section 7702 is how Buckeyes keep their success. Tax-free retirement income means you do not work your entire career just to fund government pensions. That is Ohio values—hard work should pay off for you."
— Matt Nye, 20-Year Industry Veteran
Frequently Asked Questions
How does Section 7702 help Ohio residents?
Section 7702 allows you to access retirement funds completely tax-free—avoiding Ohio's state plus local taxes (up to 6.5% combined) plus federal taxes. This can mean 40%+ more retirement income.
I pay local income tax too. How does that factor in?
Ohio is unique with local income taxes up to 3%. Combined with state and federal, you could pay over 43%. Section 7702 eliminates ALL of this taxation.
I work for a Fortune 500 company with stock options. Is this relevant?
Very relevant. Stock option exercises are taxed as ordinary income at combined rates. Section 7702 provides tax-free retirement income to balance your overall tax exposure.
Cleveland Clinic professionals have high incomes. How much can we save?
Medical specialists can save hundreds of thousands over retirement. Tax-free income on 7-figure retirement portfolios is transformative. The savings fund your retirement lifestyle.
Ready for Ohio Tax Freedom?
Discover how Section 7702 can eliminate both state and federal taxes on your retirement income. Schedule your free analysis today.
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