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Retired under the "55 and 15" provision and receive a W-2

My former employer issued stock grants - the grants included a retirement provision that if the employee reached the age of 55 and had at least 15 years of continuous service, the employee could retire from the company and continue to receive remaining stock grants on the same periodic schedule.  This is all good but the grant income is reported on a W-2 and not a 1099-R.

Here is the issue:  My state exempts retirement income which is paid to persons retired from service after reaching a specific age or after a stated period of employment.  My concern is that they will reject this income as retirement income because it was reported on a W-2. I do have a copy of the stock grant agreement which includes the retirement provision.

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1 Reply
RobertB4444
Expert Alumni

Retired under the "55 and 15" provision and receive a W-2

The stock grants aren't retirement income even though you're retired.  

 

They're reported on a W2 because they are essentially money you earned because your employer was cool.  You earned it and are being paid it but it isn't retirement income which has a number of qualifications.

 

@alanvw 

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