I participated the stock option from my company and that is pre-tax money. I already cashed them out, now I would like to invest them for retirement. Do I have to pay tax for that before I can invest them? What plan should I invest them in?
I’m a cpa, I am not sure if I understand fully, but see if I have the facts right.
You received stock options from your company and waited to exercise them. Up till now, you have not exercised and therefore have not paid taxes. Now you would like to take the money you made from the exercise and put it in a retirement account and not be taxed.
This is not possible to my knowlege. The option proceeds will be treated as regular income to you. However, if you are eligible to contribute to an IRA, you can take those proceeds and put them in the IRA and get the federal tax break for that contribution.
That’s about the best you can do.
I am not in practice, I am a corporate employee who has their CPA. So again, a CPA in PRACTICE may have some idea, but to my knowlege, that’s about the best you can do.