( Note: old post transferred to the new "Community")
Yes, the Feds certainly do.
Just make sure you an actually claim the Bailey Settlement exemption for those NC pension amounts. You must have been 5 years vested in the NC retirement plan before 12 Aug 1989....otherwise you cannot claim Bailey....many people retiring now (in 2014) with less than 30 years service find they cannot claim Bailey..
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
