Financial Focus What should you do with a tax refund? Are you expecting a tax refund this year? if so, what will you do with it? get a tax deduction or credit. A 529 plan expenses.) Without such a fund, you Of course, the answer largely de- can be used to pay for college, vocational might be forced to dip into long-term pends on the size of your refund. For the training and even some K-12 expenses 2020 tax year, the average refund was about $2,800, according to the Inter- nal Revenue Service. But whether your refund this year will be about that size, smaller or larger, you can find ways to benefit from the money. Here are some possibilities: Contribute to your IRA. You've portfolio. It's generally a smart move got until April 18 to fully fund your IRA to keep at least a portion of your over- for the 2021 tax year. But if you've al- ready reached the maximum for 2021, you could use some, or all, of your re- fund for your 2022 contribution. Assum- value won't change, it can help cushion, use part of your refund to donate to a ing you did get around $2,800, you'd be almost halfway to the $6,000 annual volatility on your portfolio. And second, support. And if you itemize on your tax contribution limit. (If you're 50 or older, by having cash available, you'll be ready return, part of your gift may be deduct- you can contribute up to $7,000.) Invest in a 529 plan. If you have ment opportunities when they arise. children or grandchildren, you might want to invest your refund in a 529 ed- ucation savings plan. A 529 plan's earn- plement an emergency fund. Ideally, this ings can grow federal income-tax free, and withdrawals are federal income-tax free provided the money is used for qualified education expenses. If you in- you're already retired, you might need vest in your own state's plan, you might this fund to cover a full year's worth of investments to pay for costly housing or auto repairs or large medical bills. Reduce your debt load. It's not educational journey does not require the always easy to minimize your debt load, funds from a 529 plan, you may change even if you're careful about your spend- the beneficiary to another eligible family ing habits. But the lower your debt payments, the more money you'll have available to invest for your future. So, you may want to consider using some of your tax refund to pay off some debts, or at least reduce them, starting with those equivalents, because the presence of cash that carry the highest interest rates. Donate to charity. You could in some states. Plus, if you name one child as a beneficiary, and that child's member of the original beneficiary. Add to the "cash" part of your all investment portfolio in cash or cash can help you in two ways. First, since its at least to a degree, the effects of market charitable organization whose work you to take advantage of attractive invest- ible. A tax refund is always nice to receive Boost your emergency fund. You - and it's even better when you put the could use your tax refund to start or sup- money to good use. fund should contain three to six months' This article was written by Edward Jones for worth of living expenses, with the mon- use by your local Edward Jones Financial ey kept in a liquid, low-risk account. (If Advisor. Edward Jones, Member SIPC Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS" Edward Jones Pam Covington CFP AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert AAMS Edward Jones Karen Rupert AAMS Financial Advisor Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne, N 46814 karen ruperttedwardores.com 263-4760 Making Sense of Investing Financial Advisor 14413 lieoin Rd Ste E Fort Wayne, IN 46814 Financial Advisor Financial Advisor Financial Advisor 7030 Pointe nvemess Way Suito 125 Fort Winyne, IN 404 432-3613 Making Sense of Investing Financial Advisor Financial Advisor 01 Chestnut Hils Parkway fort Wayne, iIN 40814 6525 Constitution Dr Fort Wayne, IN 404 7329 West Jetterson Bivd Fort Wayne, ItN 4604 7525 West Jetferson Bivd. 414 S. Scott Rd Fort Winyne, IN 46a04 Fort Wayne, N 40814 625-5700 Making Sense of Investing 432-0304 Making Sense of Investing 478-8038 Making Sense of lnvesting 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of investing Financial Focus What should you do with a tax refund? Are you expecting a tax refund this year? if so, what will you do with it? get a tax deduction or credit. A 529 plan expenses.) Without such a fund, you Of course, the answer largely de- can be used to pay for college, vocational might be forced to dip into long-term pends on the size of your refund. For the training and even some K-12 expenses 2020 tax year, the average refund was about $2,800, according to the Inter- nal Revenue Service. But whether your refund this year will be about that size, smaller or larger, you can find ways to benefit from the money. Here are some possibilities: Contribute to your IRA. You've portfolio. It's generally a smart move got until April 18 to fully fund your IRA to keep at least a portion of your over- for the 2021 tax year. But if you've al- ready reached the maximum for 2021, you could use some, or all, of your re- fund for your 2022 contribution. Assum- value won't change, it can help cushion, use part of your refund to donate to a ing you did get around $2,800, you'd be almost halfway to the $6,000 annual volatility on your portfolio. And second, support. And if you itemize on your tax contribution limit. (If you're 50 or older, by having cash available, you'll be ready return, part of your gift may be deduct- you can contribute up to $7,000.) Invest in a 529 plan. If you have ment opportunities when they arise. children or grandchildren, you might want to invest your refund in a 529 ed- ucation savings plan. A 529 plan's earn- plement an emergency fund. Ideally, this ings can grow federal income-tax free, and withdrawals are federal income-tax free provided the money is used for qualified education expenses. If you in- you're already retired, you might need vest in your own state's plan, you might this fund to cover a full year's worth of investments to pay for costly housing or auto repairs or large medical bills. Reduce your debt load. It's not educational journey does not require the always easy to minimize your debt load, funds from a 529 plan, you may change even if you're careful about your spend- the beneficiary to another eligible family ing habits. But the lower your debt payments, the more money you'll have available to invest for your future. So, you may want to consider using some of your tax refund to pay off some debts, or at least reduce them, starting with those equivalents, because the presence of cash that carry the highest interest rates. Donate to charity. You could in some states. Plus, if you name one child as a beneficiary, and that child's member of the original beneficiary. Add to the "cash" part of your all investment portfolio in cash or cash can help you in two ways. First, since its at least to a degree, the effects of market charitable organization whose work you to take advantage of attractive invest- ible. A tax refund is always nice to receive Boost your emergency fund. You - and it's even better when you put the could use your tax refund to start or sup- money to good use. fund should contain three to six months' This article was written by Edward Jones for worth of living expenses, with the mon- use by your local Edward Jones Financial ey kept in a liquid, low-risk account. (If Advisor. Edward Jones, Member SIPC Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS" Edward Jones Pam Covington CFP AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert AAMS Edward Jones Karen Rupert AAMS Financial Advisor Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne, N 46814 karen ruperttedwardores.com 263-4760 Making Sense of Investing Financial Advisor 14413 lieoin Rd Ste E Fort Wayne, IN 46814 Financial Advisor Financial Advisor Financial Advisor 7030 Pointe nvemess Way Suito 125 Fort Winyne, IN 404 432-3613 Making Sense of Investing Financial Advisor Financial Advisor 01 Chestnut Hils Parkway fort Wayne, iIN 40814 6525 Constitution Dr Fort Wayne, IN 404 7329 West Jetterson Bivd Fort Wayne, ItN 4604 7525 West Jetferson Bivd. 414 S. Scott Rd Fort Winyne, IN 46a04 Fort Wayne, N 40814 625-5700 Making Sense of Investing 432-0304 Making Sense of Investing 478-8038 Making Sense of lnvesting 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of investing