The following is true of stock given to an employee as compensation:

Stock which is not subject to a substantial risk of forfeiture triggers immediate compensation income to the employee.

Stock which is subject to a substantial risk of forfeiture triggers compensation income to the employee only when the stock is sold.

The employee may not elect to treat the spread between the fair market value of the stock (treated as though no restrictions exist) and the amount paid for it as compensation income at the time of grant.

None of the above.

2 . Steve is a sole proprietor of a construction company. His net earnings from self-employment are $65,000; his self-employment tax due is $9,380. He is not a participant in any other qualified plan. He has one employee, Kevin, whose salary is $25,000. What is the maximum deductible contribution Steve can make to his SEP-IRA and Kevin's?

$10,233 to his own IRA and $5,000 to Kevin's IRA.

$9,248 to his own IRA and $6,250 to Kevin's IRA.

$9,248 to his own IRA and $5,000 to Kevin's IRA.

$11,650 to his own IRA and $6,250 to Kevin's IRA.