Released: January 30, 2007

IRS offers split refund deposits

Source: Sandra Block, USA Today

More than three-quarters of Americans say they’re always looking for ways to save money, but they may not be looking hard enough: More than two-thirds of Americans, it turns out, also admit they’re not saving enough, according to a Pew Research Center survey. And more than a third say they often spend more than they can afford.

Saving is difficult, even for those with the best intentions. But one method that’s effective is to put your savings on auto-pilot. Millions of workers, for example, have a portion of their pay whisked into a 401(k) account. Now, the IRS is offering a similar option for folks who can’t resist the temptation to spend their refunds.

For the first time, taxpayers can arrange to have their refunds deposited in up to three accounts, including an individual retirement account. The IRS has offered direct deposit for years, but it was limited to one account. Most taxpayers had their refunds deposited into checking. 

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