Question : Stock option, is that a qualified retirement plan? Can I cash out one and rollover to IRA or annuity plan?
I participated the stock option from my company and that is pre-tax money. I already cashed them out, now I would like to invest them for retirement. Do I have to pay tax for that before I can invest them? What plan should I invest them in?
- asked by vi_nhanpham
All Answers:
Answer #1
talk to a CPA, please do NOT follow the advice ofthe Answers group (unless you find a CPA)
- answered by Ananke402
Answer #2
I'm a cpa, I am not sure if I understand fully,but see if I have the facts right.You receivedstock options from your company and waited toexercise them. Up till now, you have notexercised and therefore have not paid taxes. Nowyou would like to take the money you made from theexercise and put it in a retirement account andnot be taxed.This is not possible to my knowlege. The option proceeds will be treated as regularincome to you. However, if you are eligible tocontribute to an IRA, you can take those proceedsand put them in the IRA and get the federal taxbreak for that contribution.That's about the bestyou can do.I am not in practice, I am a corporateemployee who has their CPA. So again, a CPA inPRACTICE may have some idea, but to my knowlege,that's about the best you can do.
- answered by Nick C
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measure and fulfill your financial needs
