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Level 2
posted Mar 18, 2025 10:26:13 AM

Roth IRA contribution limit related to income from nonstatuory stock option

Hi,

I received a W2 for the gains from exercising my non statutory stock options (same amount in line 1 and line 12 code v, zero in line 11).  Do I have any earned income that would qualify me for Roth IRA contribution?  Separately, I also rolled (directly) some money from IRA to Roth IRA.  Not sure if that would have any impact to my ability to contribute to Roth IRA.  Thanks for your help.

Peter 

0 1 1530
1 Replies
Expert Alumni
Mar 24, 2025 11:40:51 AM

Yes, the entry in box 1 of your W-2 form would mean you had earned income. However, the rollover contribution would not be considered earned income, so you couldn't make an IRA contribution based on that, only on the stock options.