Do stock options count as compensation for Roth IRA purposes/deductions.The amount is listed as wages on my W-2 and taxed and it has Social Security and Medicare taxes?

The stock options are required to have taxes taken out for Federal,State,SS and Medicare. My W-2 shows nothing listed in box 11. It is basically taxed like regular income.

1224

1 Best answer

Level 15

Jun 4, 2019 1:45:26 PM

If you have a W-2 and it has an amount listed for wages that is compensation for the purposed of having an IRA.

Taxing Employee Stock Options. ... The bargain element of a non-qualified stock option is considered "compensation" and is taxed at ordinary income tax rates

Level 15

Jun 4, 2019 1:45:26 PM

If you have a W-2 and it has an amount listed for wages that is compensation for the purposed of having an IRA.

Taxing Employee Stock Options. ... The bargain element of a non-qualified stock option is considered "compensation" and is taxed at ordinary income tax rates

New Member

Jun 4, 2019 1:45:28 PM

Thank you very much for the quick response!

Level 15

Jun 4, 2019 1:45:29 PM

My pleasure

Why sign in to the Community?

Do stock options count as compensation for Roth IRA purposes/deductions.The amount is listed as wages on my W-2 and taxed and it has Social Security and Medicare taxes?