Want two bangs for your stimulus check bucks? You could have it deposited along with your refund directly into your IRA or other tax-favored retirement accounts. (Note that, if you elected for your refund to be directly depositedÂ into an Individual Retirement Arrangement, your stimulus payment will go there as well.) You'll get a tax deduction on next year's return for the deposit, as well as a reprieve if you change your mind...
According to a press release from the Internal Revenue Service, economic stimulus payments directly deposited into IRAs and other tax-favored accounts can be withdrawn tax-free and penalty-free. This relief is available for withdrawn amountsÂ less than or equal to a taxpayer's directly deposited stimulus payment. To qualify for this relief, funds must be deposited into and withdrawn from your IRA accountÂ by April 15, 2009, or Oct. 15, 2009, for those who obtain tax-filing extensions.
|Â Jennifer D. Meacham, Gather Money Correspondent|
Jennifer's column, "The Bottom Line," is published every weekÂ to theÂ Gather Essentials: Money channel.
Jennifer is a business and personal finance columnist who covers money matters for RedwoodAge.comÂ and real estate news for RISMedia, and co-authored the best-selling retirement investing guide "IRA Wealth: Revolutionary IRA Strategies for Real Estate Investment" (Square One Publishers, New York).
Keep up on the latest news and analysis into how you can take control of your business and personal financial future by joining Jennifer's "Self-Directed Investing 101" network.