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Author: jocave One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121569  
Subject: Re: ISO + Roth/Ed IRA Date: 3/11/1999 11:46 AM
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<<
Roy asks:

How do you figure tax free? When you sell the shares, your monster gain will be taxed. Period.>>

<
dls replies:

I'm confused. I thought any gains made within a Roth IRA are tax-free?
>

Obviously, there's some confusion here. Gains in a Roth are clearly tax-free. I believe the problem, and the confusion, is that you cannot get the options into a Roth (or any other tax-deferred account).

The only allowable contribution to an IRA is cash. Your ISO's are a type of security (not unlike stock certificates). You can't contribute a security to a Roth.
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