Sam's contribution on June 15, 2022 in the amount of $10,000 to his Roth IRA is:

1. Is not in excess of the allowable contribution amount because it includes "catch-up" contributions for 2020 and 2021; years in which no Roth IRA contribution was made.

2. In excess of the allowable contribution amount but he will not be subject to any excise tax to the extent he has basis in the IRA.

3. None of the above.

4. Is not in excess of the allowable contribution if he allocates/divides the contribution towards the 2022 tax year and 2023 tax year.

5. In excess of the allowable contribution amount and will be subject to excise tax.

The draft tax returns you prepare for Wendy's tax year 2010-2016 shows total taxes due of $50,000. To pay for the taxes Wendy considers obtaining a short term loan and pledging her IRA account against the loan. The account balance in the IRA is $250,000.You should advise her that pledging her IRA as security will result in:

1. The IRA being treated as partly distributed to her ($50,000) as of the beginning of the year and may be subject to income tax and penalties.

2. The IRA being treated as if the entire account ($250,000) distributed to her as of the beginning of the year and subject to income tax and penalties. That relates to federal tax levy

3. None of these choices.

4. No adverse consequences provided the security arrangement is for less than 120 days.

5. No adverse consequences since she does not plan on using the proceeds to purchase coins and collectible.