hwarrier: "A friend of mine mentioned that it is wiser to setup a self directed IRA and buy vested (employer) stock options using that. The idea being that I will have huge tax saving. As per his calculation, the entire money that I might get after IPO will be tax free. It sounds too good to be true, so I though I will check with the experts here."If you are discussing options that were granted to you(employee) by your employer then I am 98% sure that you cannot do as your friend suggests.Contributions (i.e., new dollars) to an IRA must be in cash; you cannot contribute the options to the IRA. And you cannot sell the options to the IRA because that would be a related party transaction.So how would you have your IRA custodian exercise your personal (pre-IPO) options???Regards, JAFO
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra