Yes that is correct. It's a major change from last year.
You could deduct the taxable portion in the past, but only if the taxable portion (earnings) was not subject to the 10% penalty, on your federal return. Now you can deduct it, even if it is subject to penalty on the federal return.
If you want to compare the old wording, in the instructions, see page 22 at http://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2017/PIT_IT1040_Booklet.pdf
