Bank of America

Whether or not you receive a refund this year, it is always important to think about you and your family's future. Below are topics that will help you better manage your family's short-term and long-term financial goals.

Create an Emergency Fund
Unexpected events can sometimes result in major expenses or a loss of income. To deal with such emergencies, it's a good idea to establish a second checking or savings account containing up to three to six months' worth of living expenses. You'll be able to earn a return on the money in your emergency fund if you keep it in an easily accessible money market savings account or Risk Free CD.

Scheduled transfers and Keep the Change™ from Bank of America make saving money much easier. With a scheduled transfer, a predetermined amount of money is automatically transferred from your checking account to your savings account every month.

With Keep the Change, every time you buy something with a Bank of America Visa® Check Card, we round up your purchase to the nearest dollar and transfer the difference from your checking to your savings account. For example, if you purchase a cup of coffee for $1.35, we automatically round the purchase up to $2.00 and add $0.65 to your savings account. We also match 100% of your Keep the Change transfers for the first three months and 5% thereafter, up to $250 per year paid annually.

Don't forget, you can keep track of your Bank of America checking and savings accounts, including your Keep the Change activity, online with our free Online Banking service.

Also, with My Portfolio® you can track your spending and manage your budget. See your transactions by category — like utilities, home improvement, etc. And tag your transactions as tax deductible, medical, business, or personal and generate a report by category. Sign in to Online Banking and select the My Portfolio link on the Accounts Overview screen to learn more.

Reduce High-Interest Credit Card Balances
Reducing high-interest credit-card debt is one of the smartest ways to use your tax refund. It provides an immediate return on your investment. And once you pay off the debt, you can begin to invest the money you were spending on debt payments.

Even if you don't receive a tax refund this year, you can reduce your credit card burden by consolidating your payments into one low monthly bill with a lower interest rate. A great way to do this is by transferring your balances to a Bank of America WorldPoints™ Platinum Plus® MasterCard® credit card. It comes with a 0%† introductory APR on balance transfers and cash advance checks for the first 12 billing cycles. †Click on the above link to learn more about the credit card.

Should you consolidate your debt? Calculate.

Take Advantage of the New IRA Limits
The annual contribution limits for traditional and Roth Individual Retirement Accounts (IRA) have been increased to $4,000 through 2007. Fully funding an IRA account to this higher maximum gives your retirement savings a substantial boost and provides tax-deferred earnings growth, even if your contribution is non-deductible. Maximizing your retirement contribution can also help lower your taxable income, which could help you qualify for a refund.

When investing for your retirement:

Pay Yourself First. Bank of America, N.A. makes it easy to transfer funds from your checking and savings account to a Banc of America Investment Services, Inc.® individual retirement account through Online Banking.
Simplify Retirement Account Management. By consolidating retirement accounts you may have with different providers into a single account — sometimes called a "Super IRA" — you can help simplify ongoing investment tracking and distribution management needs. Reviewing your beneficiary information is an important way to ensure your designations reflect your intended wishes.
Maximize Employer Retirement Plans. If you have a 401(k) or similar plan at work, be sure to contribute the maximum to take advantage of the tax deferral opportunities and any company matching contributions.
Catch Up. If you're 50 or older, it's a great time to consider a catch-up contribution to your traditional or Roth IRA. For 2006, you can contribute up to $5,000.
Take Advantage of Rollover Opportunities. Talk to us about rolling over other retirement plans or IRAs to Bank of America.

For more information, visit the Bank of America retirement products and services page.

Get a Head Start on Paying for Your Child's College Education
College costs are soaring. If they were to rise 6.0% a year for another 18 years, the annual cost for a typical four-year private school will increase from $27,677 today to $79,000. That means four years at private school could easily top $320,000.

If you have kids, the sooner you start saving for their college education the better. Small amounts you save now can become sizable savings through the power of compounding.

You can get started by using your refund to contribute to a 529 College Savings Plan or a Coverdell Education Savings Account (CESA). These accounts offer tax-free withdrawals for qualified college costs.

A 529 College Savings Plan has no income requirements. Each state sets its own contribution limit, and the majority of states currently have limits in excess of $200,000 per student. With a CESA, income limits apply and contributions are limited to $2,000 per beneficiary annually. However, a CESA is like an IRA in that the holder can contribute funds however they want.

For more on saving for college, visit the Bank of America Student Center.