Anywhere from 62 to 84% of people say they’ll use their income tax refund either to pay bills or to pad their savings accounts, depending on the poll.

Yet when the refund arrives — last year’s average was $2,255 — and retailers begin offering those irresistible spring specials, most people choose simply to splurge. And many people will be getting even higher amounts back due to this year’s tax rebates.

For most people, the tax refund seems like “free” money. They know they should save it. But it feels too much like a bonus, available to fund the fun, exotic events they can’t normally justify. Meanwhile, nearly three-fourths of older Americans have begun to realize they didn’t make the wisest use of their tax refunds. They now urge younger workers to begin saving for retirement early — even as soon as their first full-time job.

Why not take their advice? Rather than splurging on a wide-screen TV or an exotic vacation, consider using your tax refund to fund a GuideStone Funds RightChoice™ IRA. Your investment in your own future may allow you to live your golden years without financial worries.

What are your choices?

• Traditional IRA. In a Traditional IRA, some participants are eligible to make tax-deductible contributions, while others are limited to nondeductible contributions. Money grows tax-deferred in a Traditional IRA, meaning you don’t pay taxes on earnings and deductible contributions until they are withdrawn.
• Roth IRA. Contributions to a Roth IRA are made with after-tax money, but once assets are in the account they grow tax-deferred. Eligible withdrawals are tax-free, so the money you invest can continue to grow tax-free for as long as you live.

RightChoice™ IRAs have the same Christian-based, socially screened funds available that your regular 403(b) plan has. And as with your retirement plan, compounding can work its magic over the years. Imagine the boost to your retirement account with the addition of your tax refund each year.

And having your check deposited in a GuideStone IRA is easy.

• Choose the appropriate form. You will fill out IRS Form 1040 in order to have your entire refund check automatically deposited into a GuideStone Funds RightChoice™ IRA. If you prefer to have your refund deposited into multiple accounts, you will fill out IRS Form 8888. Both are available on the IRS Web site.
• If you already have an IRA with GuideStone. Call a Customer Service representative at 1-888-98-GUIDE (1-888-984-8433) in order to get the routing number and account number you need for the appropriate IRS form.
• If you would like to open an IRA with your refund.
• Start by filling out your Traditional or Roth IRA application now.
• Fill out the application with your personal information. To indicate that you will be opening the account with your tax refund, under section 2, Contribution Information, check Direct deposit from tax refund. Then mail the application to GuideStone.
• When you receive a confirmation letter that the account has been opened, call a Customer Service representative at 1-888-98-GUIDE (1-888-984-8433) in order to get the routing number and account number you need for the appropriate IRS form.

Your “free” money can be spent on a short-term pleasure, or it can be invested in your future. This year, consider giving your retirement account a shot in the arm. Make a lump-sum deposit in your GuideStone Funds RightChoice™ IRA or open one today, and enjoy the satisfaction of knowing you invested in yourself.

You should carefully consider the investment objectives, risks, charges and expenses of the funds before investing. For a copy of the prospectus with this and other information about the funds, call 1-888-98-GUIDE (1-888-984-8433) or download a prospectus (pdf). You should read the prospectus carefully before investing.

GuideStone Funds shares are distributed by PFPC Distributors, Inc., a registered broker-dealer and underwriter of the funds, 760 Moore Rd., King of Prussia, PA 19406. GuideStone Trust Services, a controlled affiliate of GuideStone Financial Resources, serves as IRA custodian.

This article is not intended as a substitute for legal, accounting or other professional advice. If legal, tax or other assistance is required, the services of a competent professional should be sought.