Which of the following statements regarding prohibited transactions by a fiduciary or an individual associated with traditional IRA accounts are CORRECT? 1. Generally, if an individual or the individual's beneficiary engages in a prohibited transaction with the individual's IRA account at any time during the year, it will not be treated as an IRA as of the 1st day of the year. 2. If an individual borrows money against an IRA annuity contract, the individual must include in gross income the fair market value of the annuity contract as of the 1st day of the tax year. 3. Selling property to an IRA by a fiduciary or an individual owner of the IRA is not prohibited. 4.A 50% penalty will be assessed against an IRA owner who borrows money against her IRA. 2 and 3 1.3 and 4 1 and 2 1.2 and 3