An Effective Way to Utilize Your Tax Refund

This time of year, many individuals are expecting their tax refund and considering how to best put it to use. Although it may be tempting to put it towards a new item or getaway, consider the benefits of using it to fund your IRA. Not only will this help fund your golden years, but it can help reduce your tax bill. Depending on the situation, the contributions may can either be completely or partially tax-deductible.
After meeting with your tax professional and determining your refund, consider the amount you want to contribute to your IRA. The 2022 contribution limit is $6,000 and $7,000 for individuals age 50 and older. For 2023, the contribution limits increased to $6,500 and $7,500 for those age 50 and older. If your deposit is intended for 2022, your contributions must be made by the funding deadline on April 18. 
Work with a professional and use Form 1040 to deposit the refund into one account or Form 8888 to deposit into up to three accounts. 
Working with an experienced financial professional can help you create an effective strategy to maximize your retirement savings. For more information, contact us at (661) 297-7566 or visit www.PiersonWealthManagement.com. 
Securities and advisory services offered through Cetera Advisors LLC (doing insurance business in CA as CFGA Insurance Agency LLC), member FINRA/SIPC, a broker/dealer and a Registered Investment Adviser. Cetera is under separate ownership from any other named entity. CA Insurance Lic#0C92500. For a comprehensive review of your personal situation, consult with a tax or legal advisor. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice.