Life Events Quiz

Major life events give you enough to think about when they're occurring. Learn beforehand what would happen to valuable stock compensation, whether stock options, restricted stock, or an ESPP. Test your knowledge of equity comp topics in retirement, divorce, disability, death, college funding, and other personal events.

Please answer the following 12 questions. This quiz is also a course of study. The answer key links to content on the topic for follow-up reading.

1. Your company gives you 90 days from your retirement date to exercise your stock options, but your option term expires in 60 days. How long to you have to exercise?

2. If your restricted stock vesting will automatically accelerate when you become eligible for retirement at your company, what must you watch out for?

3. Can you contribute your company stock to your IRA?

4. Can you use company stock in your 401(k) plan to exercise stock options?

5. Does participating in an ESPP affect your ability to contribute to a 401(k) plan?

6. If you have started taking Social Security payments, do you still have to pay Social Security and Medicare tax on stock compensation?

7. Who pays income taxes after restricted stock is transferred in a divorce settlement?

8. What happens to your stock grants if you become temporarily disabled and cannot work?

9. What is the most common period that companies give an employee's beneficiaries for stock option exercises after the employee's death?

10. What are the income tax consequences if your estate or beneficiary exercises nonqualified stock options after your death?

11. What are the federal income tax consequences when an estate or beneficiary sells stock previously received from stock compensation by a now deceased employee?

12. What is the kiddie tax?

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