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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15731
Experience:  15years with H & R Block. Divisional leader, Instructor
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I received stock option when working but now am retired Is

Customer Question

I received stock option when working but now am retired
Is the profit on exercising a stock option earned income that I can use for Roth IRA contribution. I get W2's and pay SS tax and medicare tax.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
HelloIf you owned the stock (you purchased the stock in your option) then this is not earned income.If the stock was purchased for you and you received the gain on the stock which was added to your wages on the W2 then yes. The amount you were taxed on and shown on the W2 is the earned income amount.Only the portion added to wages is earned and you can contribute to an IRA within the regular limits of the IRA contribution amount for the year.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Expert:  Robin D. replied 1 year ago.
Checking to see if you responded