Zaphod for President

It has been a hectic week for me. I’ve been trying to open a Roth IRA account, but got slammed with a potential $3,500 fine from the IRS. Says the genius who handles my taxes: no sweat. Then again, I don’t think it would be prudent for me to play games with the Feds, no matter how criminal they might be.

This is what I propose: I will place the $2,000 into savings, rather than a Roth IRA, in addition to the regular savings goal of $380. I will also add an additional $333.33 into this savings account every month, as if it were a Roth IRA, even though it is not.

Pros:

• I will continue to save money towards my Roth IRA.
• If my accountant is wrong, and I have to pay this money to the IRS, I will have the cash available to do it.

Cons:

• I would fail at my goal of starting a Roth IRA by June 1, 2007.
• The IRS can take weeks, if not months, to handle even the simplest tasks, so I might be stuck in limbo for awhile.
• For a long as I remain in limbo, the Roth IRA funds will grow at only 4.5%, taxable, versus tax-free at 8-12%.

As much as it pains me to do this, I think this is the smart move, the safe move.

Am I being foolish? Quick: warn me before I ruin my life (again).

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