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NC vested as of 8/12/1989

i think i may have check some box wrong etc. i was indeed NC vested as of 8/12/1989 and it gives me message of i won't have to pay tax on $20,182.14 rollover from local government employees then it says check rules to make sure you qualified to roll over your IRA?? I don't know what that means?
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Accepted Solutions

NC vested as of 8/12/1989

As long as you rolled ALL of it into an IRA within 60days, then you indicate that on the pages that follow that 1099-R form and it won't be taxed.

Your bigger issue is that once rolled into an IRA, you can no longer claim "Bailey Settlement" for any $$ you take out of that account...you have lost the ability to claim that the $$ are qualified for exemption from NC taxes.

"qualifying tax-exempt Bailey benefits rolled over into another retirement plan lose their character and would not be exempt upon distribution from the other plan unless that plan is a qualifying Bailey retirement account in which the employee was vested as of August 12, 1989. (Rollovers to IRAs will always result in a loss of tax-exempt status since IRAs do not qualify under the Bailey settlement.)"
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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1 Reply

NC vested as of 8/12/1989

As long as you rolled ALL of it into an IRA within 60days, then you indicate that on the pages that follow that 1099-R form and it won't be taxed.

Your bigger issue is that once rolled into an IRA, you can no longer claim "Bailey Settlement" for any $$ you take out of that account...you have lost the ability to claim that the $$ are qualified for exemption from NC taxes.

"qualifying tax-exempt Bailey benefits rolled over into another retirement plan lose their character and would not be exempt upon distribution from the other plan unless that plan is a qualifying Bailey retirement account in which the employee was vested as of August 12, 1989. (Rollovers to IRAs will always result in a loss of tax-exempt status since IRAs do not qualify under the Bailey settlement.)"
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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