Now that we’re in the midst of tax season, you may be anticipating a tax refund. Not everyone receives a refund but among those who do, the amount can be sizable. Last year, the average tax refund was about $2,125.

If you’re going to get a refund, start planning now how to use it. By making the right moves, you can help speed up your progress toward your financial goals.

Here are some ideas on what to do with your refund:

•Put the money in an IRA. To achieve a comfortable retirement lifestyle, you will need to draw on a variety of financial resources, one of which may be an IRA. This year, you can contribute up to $4,000—$5,000 if you’re 50 or older—to a traditional or Roth IRA.

If you received a $2,125 refund, you’d be well on your way toward “maxing out” on your IRA contribution.

If you think this amount can’t make much of a different to your long-term savings, consider this hypothetical situation: If you put that $2,125 in an IRA that earned 7 percent a year, and you never invested another dime in the account, your money will still grow to more than $16,000 in 30 years. Not a fortune, but nothing to scoff at.

In all likelihood, you wouldn’t just make a one-tine contribution to an IRA.

At the end of 30 years, you’d have to pay taxes on the earnings, but by then, you may be in a lower tax bracket. Even if you’re not, you might be able to spread the tax burden over several years.

If you had invested in a Roth IRA, your earnings will grow tax free, provided you’ve had the account for at least five years and don’t begin withdrawals until age 59-and-a-half.

Keep in mind that these rates are hypothetical only and don’t reflect the rates of any investment currently available.

•Contribute to a Section 529 plan. Many people contribute to Section 529 plans to save money for their children’s and grand-children’s college education. You can put in large amounts each year to a Section 529 plan and your earnings will grow tax free, provided withdrawals are used for qualified higher education expenses.

•Pay down high-rate debt. Short-term interest rates have been rising over the past few months. This could mean that you’ll be paying a higher rate on your credit cards, which probably carry a fairly high rate to begin with. If you use some of your tax refund to whittle down this debt, you’ll be making a wise move, as this debt is typically not tax deductible and of no benefit to you.

•Build up a “rainy day” fund. You might want to use your tax refund to build your emergency fund. You should set aside six to 12 months’ worth of living expenses to for pay expenses such a car repairs, new appliances and unexpected medical bills.

You can’t always count on a tax refund, but when you get one, make the most out of it. You’ll be glad you did.

This article provided by EdwardJones investment services.