What Should You Do With An Extra $1,000 (Besides Spend It)

By Judith Ohikuare

If you want to look beyond employer-sponsored plans like 401(k)s and 403(b)s, Celaya suggests contributing to a traditional or Roth IRA.

“Depending on your specific situation, the tax advantages associated with each IRA type can mean a significant increase in your real return, after-tax, overtime,” she explains. “Traditional IRAs can potentially lower your tax bill today, while Roth IRAs provide the opportunity for significant tax-free growth overtime.”

Try using Betterment’s comparison calculator to decide which accounts (or combination of them) might be best for you.

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This article originally published May 24th, 2017 on Refinery29.