Is NQSO income qualified for Roth IRA contributions?
October 10, 2014
Date: 17 Feb 2012
I need clarification if possible.
If a retiree from a company exercises non-qualified stock options, can the income reported on Form W-2 with respect to the options be considered â€œearnedâ€ for making a contribution to a Roth IRA?
Thanks for the insight.
Date: 12 Mar 2012
The IRS answered a similar question relating to a contribution to an IRA some time ago.
They said income from exercising a non-qualified stock option is considered to be a form of nonqualified deferred compensation, not qualifying for computing a Roth or IRA contribution.