Can I use IRA funds to exercise my stock options?

September 13, 2004

Subject:   Pension used to purchase non-qualified stock options

Date:   Tue, 17 Aug 2004
From:   Tom

Mr. Gray,

Are there any taxes due if I roll my pension from a previous employer into an IRA and use those funds to purchase my stock options within the IRA account?

Thank you.


Date:   Fri, 10 Sep 2004

Hello Tom,

The option is personal to you, so you’re not permitted to exercise the option within your IRA account. The IRA doesn’t qualify for receiving the stock related to exercise of an employee stock option.

Good luck!

Mike Gray

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