Pass variable to hook. Its possible?

Ok i can pass variables to hook but i was doing it wrong. Code should be:

function encrypt_password_function($pass, $id){
    global $wpdb;
    $encrypted=sha1($pass);
    $wpdb->query($wpdb->prepare("UPDATE wp_users SET iphone_pass = %s WHERE ID = %d",array($encrypted, '10')));
}


function encrypt_password($var1, $var2) {
    do_action('encrypt_password',$var1, $var2);
}
add_action('encrypt_password', 'encrypt_password_function', 1,2);