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I have a nice problem. My company is being bought and all my stock options will instantly vest and be purchased. The net gain is about $170 before taxes and will be, as I understand it, treated as ordinary income.

I am 59 ½ years old, already maxing out my 401K and funding two traditional IRA, one for me and one for my “retired” wife. I have bounced between the 33 & 28% tax brackets the last few years and my effective tax rate in 2006 was 22%. This windfall will most likely kick me into the 35% bracket.

The question is: Is there any tax strategy that I can employ that will lessen the tax implications?

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