What is Bailey settlement retirement benefits? How do I know my classification of retirement if it doesn't state it on the 1099R?
Bailey Settlement is used...IF...if the 1099-R in question, came from:
1) an NC state govt/NC local Govt,/ NC teachers retirement system.
or
2) a Military, or Federal Government Pension
AND...for both 1 and 2, you must have been part of that system 5 years before 12 Aug 1989 (Corrected).
Then that distribution is not taxed by NC.
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IF it's from anywhere else, IRA, 401k, company pension, or it doesn't meet that date requirement ...then it's None of the above...
(parts of some rare TSP distributions may qualify...but start date details are critical )
(RR &SS benefits go elsewhere.....not in this form...and Faulkenbury shouldn't exist anymore)
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Slipped up on the qualifying year above.....edited and correct now
According to NCDOR, "The exclusion applies to retirement benefits received from certain defined benefit plans, such as the North Carolina Teachers' and State Employees' Retirement System, the North Carolina Local Governmental Employees' Retirement System, the North Carolina Consolidated Judicial Retirement System, the Federal Employees' Retirement System, or the United States Civil Service Retirement System.
To qualify, the retiree would need to have more than five or more years of creditable service as of August 12, 1989. The exclusion also applies to retirement benefits received from the state's §401(k) and §457 plans if the retiree had contributed or contracted to contribute to the plan prior to August 12, 1989."
If this doesn't pertain to you, you will not select Bailey Settlement as an option.