Originally Posted by DrunkenShytbird

Well, I can see how somebody would max out their Tax Withholding. The best way to save money after you Max out your 401k is to obviously Save after tax monies, so with the bank paying ZIRP, it might make sense to for a Person to max out withholding through their paycheck, so that they don't even see the money till the end when the get their refund. Then, they could use the refund to fund an IRA further reducing their tax bill (you have until April 15th of the following year). What I do is to use a Cash Back CC to fund the IRA right before I file my Taxes and then pay the card in full when the Satement comes. Or, maybe he just wants to build an Emer Fund with his large refund. Point is, due to a lack of interest the "Loan" you are giving Uncle Sam isn't really harming you too much at this point and the easy convenience of the forced savings might well be worth it, especially if you will use the Money to fund your Traditional IRA, which for him is 6.5K. YMMV.