Getting a tax refund? Spend it? Or put it to work?

It's easy to look at a tax refund and see anything from a new smartphone to a big screen TV. But wait! Why not use that "extra money" that Uncle Sam has been saving for you to reduce next year's income taxes, or shrink your debt?

Some savvy retirement options:

• "One Up" yourself by increasing your retirement savings plan contribution by 1%.
• If you're eligible, use the extra cash as a catch-up contribution toward your retirement savings.
• Open and contribute up to $6,000 to an IRA account (or $7,000 if you’re age 50 or older).

All of these will reduce your taxable income for next year … and defer the taxes until after retirement.

Don't stop there. Here are other things you can do with the windfall:

• Pay off high interest credit card debt and keep that extra 18% or more in interest in your pocket.
• Start or contribute to a college saving fund. A 529 account will allow tax-free use of the money to pay college bills.
• Take a peek at your current home and liability insurance policies and make sure there aren't any gaps in coverage … before the unexpected comes knocking.

• Pre-pay toward your mortgage, car or student loan principal balance. It could save you substantially in interest payments.
• Build or rebuild an emergency fund that can last three to six months if needed. So if you're hit with unexpected bills, you won't have to reach for that credit card or raid your retirement plan.

Now, there's a great gift to get with your refund … the future.

_{Securities and investment advisory services offered through VALIC Financial Advisors, Inc. (“VFA”), member FINRA, SIPC and an SEC-registered investment adviser.} 

<sub>Annuities issued by The Variable Annuity Life Insurance Company (“VALIC”), Houston, TX.  Variable annuities distributed by its affiliate, AIG Capital Services, Inc. (“ACS), member FINRA.   

AIG Retirement Services (“ARS”), represents AIG member companies -The Variable Annuity Life Insurance Company (“VALIC”) and its subsidiaries VALIC Financial Advisors, Inc. (“VFA”) and VALIC Retirement Services Company (“VRSCO”). All are members of American International Group, Inc. (“AIG”).

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