I was presented with a "cocktail party" idea that goes as follows: Even though I make too much income to contribute to a Roth IRA, I could still go ahead and set up an account and contribute anyways. Despite the fact that I am technically ineligible to contribute, all that would happen is that I would pay a 10% penalty. But, I could keep the rest of my money in the Roth IRA! Therefore, even though I was not supposed to contribute, 90% of my contribution would still end up in a Roth IRA and grow tax free! Anyone done this or have any comments?