Bailey Settlement from Insurance Group

[Beezo1951]

I receive Bailey Settlement from NC.  I transferred my retirement income  from a 403B to an Insurance investment firm  which paid more interest and long term benefits.  I now draw monthly income from that insurance firm as part of my retirement.  I receive a 1099R each year.  DO THESE FUNDS QUALIFY AS A BAILEY BENEFIT DEDUCTION  or have I just lost that option because it comes from an insurance company.

[SteamTrain]

@Beezo1951 

Sorry, but you probably just lost the Bailey eligibility.

The NC DOR page about Bailey,  says this.....

" .....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.  "

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Yeah...unless the other Plan is also Bailey eligible....I don't think that any private Insurance plan/annuity setup is Bailey eligible,   If you are unsure, go to the NC DOR web page and find a number to call them and ask.....but I think you are out of luck.

https://www.ncdor.gov/taxes-forms/individual-income-tax/filing-topics/bailey-decision-concerning-fed...