I'm just investigating this notion, not seriously considering it
(at least not yet), but I have some colleagues who I think
are a bit more serious about it.
Anyhow, yes, the options in question are qualified. No
income realized at execution; only on subsequent sale.
I'm not so sure of the AMT for qualified ISOs. Last year's
"correction" tax act liberalized the
AMT for LT gains considerably, but I admit I haven't worked
through it for options of this kind. Must look into that.
However, AMT liability, whatever it turns out to be,
would likewise exist if the options were exercised outside
an IRA. So I don't see a big difference.
Still, the basic question remains if the IRS would buy
the purchase of ISOs inside an IRA, whatever the external
liabilities.
And, of course, the next question in the wings is, if
they'd buy it in a standard IRA, what about a Roth? Essentially
the same restrictions on the two as to what they can invest
in. Now THAT's worth thinking about if it's remotely
feasible <gg>.
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