Guest BruceC Posted October 25, 2011 Posted October 25, 2011 Recent retiree (2010), has no earned income for 2011, but is exercising NQSOs, the bargain element of which is subject to employment tax. Is this eligible to be treated as earned income for purposes of IRA contributions for 2011? BruceM
jpod Posted October 26, 2011 Posted October 26, 2011 Sure sounds like it is EI. If it is reported on a w-2, or 1099-Misc as non-employee compensation, that will support the IRA contribution.
masteff Posted October 26, 2011 Posted October 26, 2011 Sure sounds like it is EI. If it is reported on a w-2, or 1099-Misc as non-employee compensation, that will support the IRA contribution. I agree after reading IRS Pub 590 and instructions for W-2... nqso is reported on W-2 using code V which says to report the spread in boxes 1, 3 and 5. Pub 590 says comp includes any amount properly shown in box 1 of W-2. Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now