Funding of IRA
Hello
I have recently retired, but have a few years of non statutory stock options left. Assuming there is a profit when I sell, it will generate a W2, with the gain shown in Box 1. The W2 will also show code v in box 12. As this will be my only income ( eg vía a W2) can I fund an IRA with this income? There is a lot of conflicting data out there.
Thanks so much!
Permalink Submitted by Alan - IRA critic on Tue, 2019-01-29 17:52
The IRS considers the Box 1 amount less the Box 11 amount to be taxable compensation (per Pub 590 A, p 6). Therefore you can make an IRA contribution using this income.