Do you historically get an IRS refund every year?

Some taxpayers have a history of intentionally having too much withheld from paychecks, in order to have a larger overpayment refund at filing time next year. This is a type of forced savings plan.

However, if the IRS delays processing, and your refund is suspended in a “no man’s land,” you will have no alternative except to wait until the IRS catches up. This can be 13 weeks in a good year and indefinite in a bad year.

If your goal is to guarantee a hands-off savings plan, consider asking your payroll department to direct deposit a portion of your payroll to a separate Savings Account. Many payroll systems can accommodate several partial payment direct deposits for you in a payroll cycle, to help you budget, manage your finances and meet your goals.