3 great ways to spend a tax refund in 2020

While a tax refund means you loaned the government too much money last year, it doesn’t make that refund check any less fun to get in the mail. Some people like to save it, some use it to make an extra house payment, and some just like to spend it. There are tons of options, but the smartest decision is probably to invest it in your future. Here are a few good ways you can use your 2020 refund…

Put it in an IRA: By now you’re probably aware of the benefits of an IRA to your retirement plans, but if you need a refresher course, here’s something to check out. If you’re not fully committed to funding your IRA each month, a nice check is a good way to beef it up.

Put it in your 401(k): The limit for 401(k) contributions this year is $19,500 so it’s probably safe to say that a lot of us aren’t in danger of maxing out our contributions. If you’re looking for a good way to boost your 401(k) in 2020, using your tax refund is a great way to start.

Start a college fund: College is expensive, and if you’re planning on helping your child (or future child) pay for school, it’s a great idea to start saving now. A 529 plan is a great tool for you to use and allows tax-free growth as long as you spend it on qualifying education costs. If this sounds good to you, check out this resource to get started.

John Pettit

John Pettit

John Pettit is the Managing Editor for CUInsight.com. Through news, community, press, jobs and events, he keeps credit unions digitally informed throughout the day. Web: www.cuinsight.com Details