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Bailey settlement applicability question on TSP RMDs for CSRS Federal Retiree after moving to North Carolina
Based on what I have read I believe my CSRS pension meets the criteria for exclusion from NC taxes because I retired with 39 years of service in 2020 and my service computation date was in January 1982, which was 7 years (only 5 years is required) before the 1989 vesting date. In 1987 I also began contributing to the TSP. Since I was under the CSRS pension plan there were no matching Federal Employer matching funds of contributions that the FERS pension plan would have. I read NC Directive PD-99-1 regarding Qualified Federal Retirement Systems, and CSRS, FERS and TSP are all listed a QUALIFIED. My question has to do with my TSP account. When I begin to take RMDs from my TSP account (at age 73 thanks to the recent Federal tax rule change), when I move to NC will those RMDs from my TSP account be excluded from NC taxes? I am trying to determine if the exclusion applies to me because I retired under the CSRS pension system rather than the FERS pension system. Every little bit helps. Thanks.