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Date:   Tue, 20 Jun 2006
From:   Michael

If I exercise my (non-qualified) stock options after I retire, how will withholding and reporting be done, since I will no longer be an employee?

Answer

Date:   05 Jul 2006

Hello Michael,

Since the options were received relating to your employment, your employer will still be required to withhold income and employment taxes and report the income on Form W-2, even when you are no longer an employee.

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, Non-Qualified 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.