If you’ll be receiving a tax refund, you have several ways to receive the money, as well as spend it.
If you’ll be receiving a federal tax refund this year, congratulations! In fact, if you filed your taxes more than three weeks ago, chances are you’ve already received it because the IRS says it issues 90% of refunds in less than 21 days.
If you’re still in the planning stages for filing your return, you have a number of options for receiving your federal income tax refund, including:
Direct deposit: Roughly 80% of all taxpayers who receive a federal tax refund do so by using e-file and direct deposit. It is the fastest way to receive funds, which can be deposited into a checking, savings—or even an individual retirement (IRA) account. To be eligible for direct deposit, your refund must be $1 or more.
TreasuryDirect®: You can also have the funds deposited into a TreasuryDirect online account, which you can use to purchase U.S. Treasury marketable securities and savings bonds. For more information on this option, visit the TreasuryDirect website.
IRA: You can direct deposit all or part of your refund into a traditional IRA, Roth IRA, or SEP-IRA (note: you cannot deposit into a SIMPLE IRA). To choose this option, you must have an existing IRA account before you file your return.
Savings bonds: You can use the refund to purchase up to $5,000 in U.S. savings bonds. If your refund exceeds $5,000, the IRS will process the non-savings bond portion first, and forward your savings bond request to the Treasury. It can take up to three weeks for the bonds to be sent to the address you specify on your return. For more information, visit the IRS website
Education Savings Account (ESA) or Health Savings Account (HSA): You can also have the funds applied to an ESA or HSA account.
Paper check: You can request a paper check to be sent to you at the address you list on your return.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. This material was prepared by LPL Financial, LLC. Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity. Securities and insurance offered through LPL or its affiliates are:
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