2.Sally and Patrick are married with 4 young children. Patrick stays at home with the kids while Sally works as CEO of a small manufacturing firm earning $105,000 annually. Sally is covered by a 401(k) plan at work, but they would like to maximize their IRA contributions as well. Which of the following are true assuming their AGI is $105,897?

a. Sally and Patrick could each contribute $6,500 to a Roth IRA.

b. Sally and Patrick could each contribute $3,000 to a deductible traditional IRA

.c. Only Sally can contribute to any type of IRA. Patrick has no earned income.

d. Patrick could contribute $5,500 to a traditional deductible IRA.e. "Sally and Patrick could each contribute $6,500 to a Roth IRA" and "Patrick could contribute $5,500 to a traditional deductible IRA"

3.INSTRUCTIONS:Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.

You can offset the effects of earning a lower rate of return by [increasing the amount you invest each year|shortening the period over which you build up your retirement account].