BUT..be very careful..only Military people who were 5-year vested by 12 Aug 1989 can claim it is exempt. Military retirees must have started their service before 12 Aug of 1984 in order to claim "Bailey".
https://www.ncdor.gov/taxes-forms/individual-income-tax/bailey-decision-concerning-federal-state-and...
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Military people retiring in 2016 would need MORE THAN ~30-31 continuous years of service to claim Bailey exemption.
(~25 years for 2010 retirees)
..thus All those with less service cannot claim Bailey anymore. I expect that this is a large % of recent retirees with 20-29 years of service. Only a very, very, few remain for a full 30 years.
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____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
