Yesterday was tax day, so a lot of Americans know by now whether they owe the government money or if they have some cash coming back to them. If you’re about to enjoy a refund, here are three smart destinations for your cash…
An IRA: 2020 was a wild one and 2021 is kinda crazy as well. If you haven’t been able to put a lot of money away for retirement lately, a tax refund might be just what the doctor ordered. By now you’re probably aware of the benefits of an IRA to your retirement plans, but if you need a refresher course, check this out.
A 401(k): The limit for 2021 401(k) contributions is $19,500 and a lot of us aren’t in danger of hitting that mark. So, if you’re looking for a few ways to boost your contributions this year, using your tax refund is a good way to start.
A 529 plan: College can be pricey and if you’re planning on helping your child attend a good one, it’s a great idea to start saving now. A 529 plan is a great tool for you to utilize, but there are two different types of 529 plans, so if you’re interested, start here.