The Clark Howard Podcast 02.11.26 Tax Refunds & Withholding / Clarksplainer: Trump Accounts
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Feb 11, 2026 They dig into why many tax refunds are larger this year and what to do with an unexpected windfall. Practical tips on adjusting withholding so you do not overpay during the year. Clear explanation of newborn accounts seeded with $1,000 and who should avoid self-funded versions. Straightforward takes on Roth vs traditional retirement choices and smart uses for 529 plans.
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Adjust Withholding And Redirect Funds
- Reduce payroll withholding now so you don't overpay all year and lose access to your cash.
- Redirect the extra take-home to 401(k) contributions or automatic Roth IRA deposits.
Favor Roth Over Traditional Retirement Accounts
- Choose Roth contributions for your 401(k) unless you're extremely high-income because taxes are historically low now.
- Prefer Roth IRAs over traditional IRAs to avoid a future tax bomb in most circumstances.
Pay Utilities By ACH To Avoid Fees
- Avoid paying utility bills by credit or debit card when they charge a 3% fee; use ACH transfers instead.
- ACH payments are acceptable and avoid unnecessary merchant fees on recurring bills.