Retirement Savings

Enjoy Your Tax Refund at Retirement Instead?

March 2020 

If you receive a tax refund most years, you may want to consider increasing contributions to your RIC savings account and decreasing your tax withholding on your W-4. By doing so, your tax return will be smaller but your retirement income may well increase. Even adding $20/month ($10/paycheck) could be worth almost $20,000 when you retire. 

If you have questions, contact your financial advisor to review your specific situation. To request a payroll deduction increase, complete the RIC Account Form.

Here’s how a small increase to your contribution might add up over time-

An additional contribution of: 10 years 20 years 30 years
$5/month could add up to … $   812.37 $2,267.20 $  4,872.56
$10/month could add up to … $1,624.73 $4,534.39 $  9,745.13
$15/month could add up to … $2,437.10 $6,801.58 $14,617.70
$20/month could add up to … $3,249.47 $9,068.77 $19,490.26

 

 

 

 

Assumes a hypothetical 6% percent rate of return