What are You Doing with Your Tax Refund?

By Brendan Hughes0 Comments

It’s tax season and for some that means the expectation of a tax refund. What will you do with that refund…pay bills? Purchase something fun? Book a vacation? How about contribute a portion to a retirement account?

While not as exciting as using a tax refund for a vacation, contributing a portion of your refund to a retirement account could benefit you now and in the future.

In the recent US News & World Report article “How to Save Your Tax Refund for Retirement”, author Emily Brandon, explains how depositing your refund in an IRA could qualify you for a tax deduction on next year’s tax return.

A number of items should be considered before making a decision on contributing according to the article, including: your unique tax situation, the contribution limits for 2017, and what year the contribution should be applied to. In addition, it is always recommended to consult with a tax or financial professional to make an informed choice.
 
A tax refund could be used to contribute to a new self-directed IRA at Equity Trust. Our self-directed IRAs allow investments beyond stocks and mutual funds, including real property, promissory notes, and private businesses among other alternatives.

For more information about self-directed IRAs, set up a free consultation with an Equity Trust Senior Account Executive.