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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: Using ISO in rollover IRA? Date: 10/15/1997 3:41 PM
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Greetings, Zany, and welcome to Fooldom.

<<Can the equity in a rollover IRA be used to purchase incentive
stock options which would become part of the rollover IRA?

If the ISOs are in my name and the rollover IRA in my wife's
(both living in Texas) can the ISOs be used with the IRA in her name?
Or can the IRA be put in both our names to make it work?>>

If you can convince the company to sell them to YOUR existing IRA AND convince your custodian to purchase them on your behalf AND then you roll that IRA to another, then yes they can be part of the rollover IRA. OTOH, if you want to cash out the IRA, use the proceeds to buy the ISO and roll those to another IRA within 60 days, then the answer is no, you can't do that. Securities may be rolled to an IRA only when they are already in the IRA that's being rolled or when they are part of a retirement plan distribution that's being rolled to an IRA.

The ISO aren't in your spouse's name, so I fail to see how she can purchase them. And an IRA may NEVER be held jointly by anyone, so no IRA can be held in both of your names. Sounds like the rollover IRA will be in your spouse's name, not yours, so I don't think you'll be able to do what you desire.

Regards……Pixy
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