56 NEBRASKA CATTLEMAN January 2025 Roth IRA you contribute after-tax dollars, but any potential investment growth is distributed tax free after age 59½ (as long as you’ve had the account more than five years), regardless of your tax bracket. Because you have already paid income taxes on the contribution, the IRS allows you to grow and take retirement withdrawals free of income tax (you are never paying taxes on the growth). The advantage of a Roth retirement account is that you have tax-free withdrawals during retirement. The disadvantage is that contributions do not reduce your amount of taxable income now. If you do not have the cash flow to contribute to your Roth, but your taxes are low, consider working with your financial advisor to convert some of your traditional IRA funds to a Roth IRA through a Roth Conversion. SEP IRAs If you have a spouse who works outside of the operation, you can leverage large employer-sponsored retirement plans such as 401(k) accounts for the household, but often these plans can be costly to manage and come with restrictions that don’t always fit the operational structure of a small business. In simple terms, a SEP IRA is a retirement savings plan specifically designed with small business owners and self-employed individuals in mind. It allows owners to make tax-advantaged contributions to their employees’ retirement accounts as well as their own. They also come with higher limits, meaning business owners can grow retirement savings faster. The SEP IRA contribution limit for 2025 is 25 percent of eligible employee compensation, up to $70,000. The maximum compensation that can be considered for contributions in 2025 is $350,000. SEP IRA plans are best for sole proprietors and companies with a small staff because the business owner must establish a SEP account for each employee and contribute to those accounts at the same rate as they do their own. All SEP contributions are funded solely by the business. Employees are not permitted to invest income in a SEP IRA. Simple IRAs A Savings Incentive Match Plan for Employees (SIMPLE) IRA is a retirement savings plan that allows small businesses to contribute to their employees’ and their own retirement. This option may be ideal for small businesses with 100 or fewer employees (earning $5,000 or more) that are seeking a plan that allows employee-elective salary deferral contributions, requires minimal IRS reporting and has minimal cost. Solo 401(k) A solo 401(k) is a retirement plan for self-employed people or business owners with no employees or just a spouse. It’s also known as an individual 401(k), HERDING PROFITS CONTINUED FROM PAGE 54 CONTINUED ON PAGE 58 35th Annual Bull Sale Sunday, January 26, 2025 Marty Ropp 406-581-7835 Corey Wilkins 256-590-2487 Jared Murnin 406-321-1542 www.alliedgeneticresources.com 12:30 PM (CT) • At the Ranch, Miller, NE Selling 300 Simmental, SimAngus™ & Angus Bulls Nebraska’s Largest Source for Homozygous Black, Homozygous Polled SimAngus™ Genetics All bulls are born, fed and raised from one ranch, giving you the most accurate contemporary groups possible. Bulls will be performance and fertility tested and sale with genomicaly enhanced EPDs. All bulls will be cared for free of charge until April 1. Visit triangleranch.com for additional sale information or call us to request a sale book. 867M TJ GOLD 274G SON ASA 4365558 PB SM $API 168 • $TI 100 545M DB ICONIC G95 SON ASA 4366374 1/2 SM 1/2 AN $API 169 • $TI 111 Broadcasting Real-Time Auctions Darby and Annette Line 35355 Arrow Rd. Miller, NE 68858 Darby: 308-627-5085 Home: 308-457-2505 Dillan: 308-293-9241 www.trianglejranch.com
RkJQdWJsaXNoZXIy NTMxNTA5