Life Events Quiz

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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Customize This Quiz For Your Company

All of our quizzes are also available through our custom stock plan sites and as part of our content licensing to companies. We can even customize our quizzes to fit your stock plans. This makes the quizzes a useful tool for education and communications when you award new grants, switch from options to restricted stock, or near a major vesting date. For details of our corporate services and licensing, email

Continuing Education Credits For CEPs, CFPs, and More

The Learning Center has courses and exams offering continuing education credits for Certified Equity Professionals, Certified Financial Planners and Certified Private Wealth Advisors (CPWA) and Certified Investment Management Analysts (CIMA) through the I&WI. Each course features articles, FAQs, and podcasts, woven into an interactive learning tool that teaches the topics in a memorable way. The answer key for each exam also links to relevant content on for further reading and review.

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