54 NEBRASKA CATTLEMAN January 2025 invested in stocks, bonds or mutual funds offer tax deductibility with tax-deferred growth. During high-income years, contributions to these investment vehicles can reduce your taxable income today while offering compounded savings for the future. Producers often reinvest back into their operation, but implementing one of these strategies alongside your operation’s growth can reduce risk and diversify retirement income or equalize estates down the road. TRADITIoNAl IRAS Individual retirement accounts (IRAs) are a type of tax-advantaged account that can help you boost your retirement savings. The most common IRAs are traditional and Roth IRAs. Both are designed for long-term growth, but there are some key differences, including how your contributions are taxed and when you can withdraw funds. If you expect your tax rate during retirement to be lower than it is today or if you want to reduce taxable income now, traditional IRAs may be a fit for you. Anyone with earned income can make contributions to a traditional IRA of up to $7,000 per year in 2025. Those age 50 and older can also contribute an additional $1,000 catchup contribution. Contributions are tax deductible, and your savings grows tax deferred. You can begin making withdrawals at age 59½, and you must take required minimum distributions at age 73. Withdrawals are subject to income tax, and early withdrawals before age 59½ may be subject to a 10 percent penalty. Your ability to deduct contributions to a traditional IRA is dependent on your income and subject to income phase out. Work with your accountant to determine your deductibility. RoTH IRAS During lower-income years consider taking advantage of a Roth IRA. With a HERDING PROFITS CONTINUED FROM PAGE 52 CONTINUED ON PAGE 56 Jessica Manion is a trusted financial advisor with First Investments & Planning at FNBO providing advice and guidance to individuals and businesses through financial planning and investment management. Jessica and her husband have two young boys and operate a farm and Red Angus cattle ranch in Alliance. WWW.SCOTTANGUSCATTLE.COM RANCHOFFICE@SCOTTANGUSCATTLE.COM | 20898 N 465 STREET, BELGRADE, NE 68623 MARLIN SCOTT (308) 550-0202 KELLY SCOTT (308) 550-1726 SAM SCOTT (308) 550-1738 ABBY ROPERS (308) 550-0850 A.J. ROPERS (308) 215-0172 CALL OR EMAIL FOR A SALE BOOK! AUCTIONEER | MATT LOWERY 308-750-6119 SALE HOSTED BY WWW.DVAUCTION.COM 1PM JANUARY 29, 2025 AT THE RANCH BULLS CAN BE VIEWED THE MORNING OF THE SALE CALL ANYTIME TO VIEW THE BULLS PRIOR TO SALE DAY! 70+ ANGUS YEARLING BULLS, 7 SUMMER/FALL BULLS, 8 SIMANGUS YEARLINGS SIRED BY: PAPPY, CRAFTSMAN, JAMESON, MILESTONE, BADLANDS, ARMSTRONG, BADGER, LOGO 8148, STELLAR, ROBUST, VIRTUE, PATHFINDER, PROFOUND, PANTHER, PERSEVERANCE, OPEN RANGE, BLOODLINE, AND HIGH ROLLER. THE FIRST BULL CROP OUT OF OUR FAMOUS DONOR SITZ PRIDE 200B! SAC HOLD THE PHONE 4051 SAC BRAND EM 4044 SAC ABUNDANCE 4142 SAC VOLUME 4711 SAC CARTWRIGHT 4071
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