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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.

Answer

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

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.