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 How do I roll options or exercised stock into an IRA or 401k?

Jonathan Khan's profile image
Jonathan Khan posted 06-03-2024 12:41

I would like to know what needs to happen to roll exercised stock or preferably my options into my IRA or 401k to reduce tax liabilities. Where do I find information on this?

Brent Devey's profile image
Brent Devey

Hi, @Jonathan Khan. From our Ask a Tax Professional event, @Daniel Krolikowski answered a similar question. He said: 

"Generally, under IRC Sec. 219(e)(1), contributions to IRA's, except for rollover contributions, must be in cash.  In addition, IRA's can generally not purchase shares from a disqualified person under IRC Section 4975(c)(1)(A).  You can still check with the self-directed IRA custodian to see if the IRA can purchase private shares from a non disqualified person."

Check replies number 40 and 41 in that thread for more details.