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Do I have to prove that I was on active duty 2001-2005 in North Carlina in order to be eligible for the Baily Settlement?

Forum|Forum|7 years ago
June 5, 2019
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Best answer by SteamTrain

You might have to prove you were in-service 5 years before 12 Aug of 1989.

AD in 2001-2005 doesn't change that.

That 1989 date is critical for a military retirement 1099-R ...otherwise it is not Bailey Settlement eligible.

SteamTrainAnswer

Employee

You might have to prove you were in-service 5 years before 12 Aug of 1989.

AD in 2001-2005 doesn't change that.

That 1989 date is critical for a military retirement 1099-R ...otherwise it is not Bailey Settlement eligible.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

B

Bobby502Author

In my research I found that it is after the year 1989 that makes me qualified for Bailey. So my active duty time period, 2001-2005 is valid for Bailey. Last years taxes had no problem being filed. Now it starts all over again.

"As a result of the North Carolina Supreme Court's decision in Bailey v. State of North Carolina, North Carolina may not tax certain retirement benefits received by retirees of the State of North Carolina and its local government or by the United States government retirees (including military) for each retirement plan if the retiree has 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."

Thanks for your help.