FREE ESOP QUIZ (Trustee)

Welcome to our Free EESOP Quiz for Internal Trustees. This sample, of our full training and testing, is designed for people who are considering being an internal trustee for their company. This ESOP quiz is a small sample of the over 400 questions of our internal trustee training and testing, to help you see if you are up to speed on being an ESOP internal trustee. There is significant personal liability being an ESOP Trustee, as ERISA law states an Internal Trustee cannot be indemnified by the company; and the DOL considers trustees as ERISA/ESOP experts. Are you an ERISA expert?

We designed our FULL ESOP Internal Trustee training and testing as a means to help your company implement best practices to mitigate your personal fiduciary liability, and by educating and testing the student on these best practices. This ESOP quiz for Internal trustees was designed to quickly assess your knowledge to know if you should take our full training and testing. Please take a few minutes and answer the TRUE or FALSE questions; as they describe your company and your personal knowledge of ERISA in certain ways that can help you understand if you are ready to take on this very important role.

We also designed our ESOP quiz so that you will receive an email with your answers, in order to share those answers with your advisors and/or others. We do not collect email addresses to sell to others, nor share with anyone outside of the advisors participating in our website.

Please Take our 21-point ESOP Quiz below
1) Trustees should be covered under fiduciary liability insurance and the plan sponsor acquire a fidelity bond
2) The DOL's power rests on suing the ESOP Fiduciaries for breach of fiduciary duty
3) DOL Auditors are usually looking for issues involving votes, transactions, and valuations
4) Typical IRS issues involve contributions, allocations, vesting, and determination letters
5) The IRS has 2 systems: Self Correction Program or SCP or VCP for Voluntary Correction Program
6) Trustees are considered the actual shareholder for the ESOP trust's shares
7) A directed trustee is usually directed by the participants, the board or named fiduciary
8) Pass-through voting is also called "Particpant Direction."
9) Trustees are expected to challenge the valuation, its assumptions, models and approaches
10) The IRS, not the DOL, requires an independent valuation to determine the fair market value of the ESOP Shares
11) "Fair consideration" is another way of saying "Fair Market Value"
12) A "peer Review" allows a second appraiser to reconcile differences in valuation conflicts
13) It is the trustee's role, not the company, make sure participants are paid properly for conditions involving death, disability, or retirement
14) In most cases, taxable distributions over $200 require a 20% withholding for income tax
15) It is the trustee's responsibility, not the plan sponsor's, to accurately pay withholding using IRS for 945
16) The employee participants and trustee don't have the right to terminate the plan
17) During a purchase/transaction process, the trustee should clearly understand the transaction's indemnification provisions
18) The Trustee has the right to require indemnification provisions to any transaction document
19) It is common to find trustees as "parties of interest" if they are officers, or key employees of the company
20) It is the responsibility of the trustee to engage in the purchase and transaction process
21) A fidelity bond is required to protect plan assets from misuse or misappropriation by plan fiduciaries
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