Which statement regarding Profit Sharing Plans is correct?

1. Profit sharing plans must allocated profits equally between all employees

2. All of the statements are true.

3. None of these choices.

4. Profit sharing plans always provide for employee dicretionary deferrals.

5. Profit sharing plans must make contributions in all year in which the employer has a profit. In other years, contributions are discretionary.

Funds from an IRA may be invested in:

1. An airplane

2. All of these choices

3. A yacht/boat

4. A professional sports team

5. Real Estate

Wendy wants to establish and fund a Traditional Iitional IRA during 2022. Which of the following statements are true:

1. Wendy may establish a Traditional IRA but the contribution amount allowed under the Internal Revenie Code may be reduced due to her AGI.

2. All of the statements are true.

3. Wendy may establish a Traditional IRA and contribute $6,000 but the deductibility of the contribution may depend on whether she is an active participant in an employer sponsored plan.

4. Wendy cannot establish a Traditional IRA if her spouse already made a contribution to a Roth IRA.

5. None of these statements are true.