@thomasreindl
The Pension should be OK.
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The roll into the traditional IRA would not, no matter whether the TSP was Bailey eligible or not.
"Conversely, qualifying tax-exempt Bailey benefits rolled over into another retirement plan lose their character and would not be exempt upon distributions from the other plan unless that plan is a qualifying Bailey retirement account in which the employee was vested as of August 12, 1989. "
Ref: Bailey Decision Concerning Federal, State and Local Retirement Benefits | NCDOR
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As an aside: TSP eligibility itself was defined with slightly different rules in Directives PD-99-1 and PD-99-2....and requiring the first contribution before 12 Aug of 1989 in any case. (with a bunch of 2yr/3yr vesting handwaving about whether any employer...(federal) match was allowed to be Bailey exempt too. Defined in PD-99-2... But this wouldn't have been a question in your case, since you had no employer match....and had exited that TSP long ago).
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Directive PD-99-1 | NCDOR
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Directive PD-99-2 | NCDOR
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
