Stock Trading and Other Things

Can I use 2007 W-2 income from exercise of stock options and deferred compensation to contribute to an IRA?

I am retired and receive payments from a deferred compensation plan and also had stock options that I exercised in 2007 all of which were reported as income on a W-2 from my company - can I use this income to contribute to an IRA

Public Comments

1. If your payment was reported in box 1 of a W2, then it is treated as taxable compensation and you can contribute it to an IRA.

2. No, neither of those is qualifying income for contributing to an IRA.