Nearly 55 percent of Americans have less than $25,000 in savings. Your future self will thank you for preparing for retirement. Stash your refund in a traditional IRA or another tax-deferred account, like a 401(k) or 403(b), and you’ll also pick up a tax deduction on next year’s returns.
Crunch the numbers: If you put your $2,000 refund into a retirement fund that earns 8 percent annually, it will be worth more than $20,000 in 30 years. Visit moneychimp.com to discover how much your refund can grow over time.