Bailey Settlement from Insurance Group

Beezo1951 — Mon, 03 Mar 2025 02:22:05 GMT

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.

Re: Bailey Settlement from Insurance Group

SteamTrain — Mon, 03 Mar 2025 11:45:26 GMT

@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. "

________________________

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-federal-state-and-local-retirement-benefits

topic Bailey Settlement from Insurance Group in Retirement tax questions

Bailey Settlement from Insurance Group

Re: Bailey Settlement from Insurance Group