Braving the fierce Wabasha, Minnesota, winter, retired schoolteacher John Gustafson climbs out his second floor window in his pajamas to avoid being seen by Internal Revenue Service (IRS) Agent Elliot Snyder. Outside, John runs into his next-door neighbor, widower Max Goldman, and endures Max’s usual string of insults. That night, the two men notice the arrival of an attractive new resident across the street. The next evening, John panics when he hears someone at the door. He attempts to flee again, but accidentally falls off the roof and lands at the feet of his new neighbor, American literature professor Ariel Truax. Inviting herself inside to use his bathroom, the free-spirited Californian questions John about his love life and confesses she stole pieces of his mail to learn his name. At the pharmacy, John jealously watches between the aisles as Ariel introduces herself to Max, repeating her charade by pretending his mail was delivered to her house by mistake. Max’s son, mayoral candidate Jacob Goldman, stops by his father’s house in time to see Max playing a prank on John by reprogramming his television. Jacob is tired of the old men’s childish feud, but agrees to remain silent after observing John exact revenge by spraying Max’s roof with water. The next morning, Max evades the intended avalanche above his front door, but nearly crashes while investigating the stench of a rotting fish John left in the back seat of his car. The two men run into each other at their local bait shop, where the owner, Chuck, encourages them to pursue Ariel’s affections. On Thanksgiving, Jacob Goldman rekindles his childhood affection for John’s daughter Melanie, who has recently separated from her husband, Mike. During their respective meals, John and Max distractedly stare out the window at Ariel’s house, and are shocked to see Chuck, the bait shop owner, appear with flowers at her doorstep. The next day, Jacob and Max rush to interrogate Chuck about his visit, and he reports that Ariel is an “angel” who made him feel young again. The neighbors race home to bathe and put on their best clothes, but Max beats John to Ariel’s front door. Inside, he inspects her eccentric collection of artwork and invites her to go ice fishing with him the following day. Although Max is distraught when Ariel insists upon releasing all her catches, she claims they will become great friends. Afterward, John informs Max that Chuck died in his sleep the previous night, and Elliot Snyder forces John to visit his office at the IRS. John returns home to find Ariel cooking in his kitchen, and they share a romantic dinner. The next day, John’s ornery, ninety-four-year-old father insists he continue seeing her. Ditching an appointment with Snyder, John spends the day with Ariel, explaining that he and Max were once best friends who fell out over a woman. He kisses her, and is surprised when she invites him upstairs to make love. After seeing Ariel leaving John’s house in the morning, Max seeks revenge by dumping John’s ice fishing shanty into the lake. Believing John “stole” Ariel from him just like he stole the woman who eventually became John’s wife, Max fights him until John’s father breaks up the brawl. Max claims he does not have time to wait around for another woman and suggests John will be unable to provide for Ariel once the IRS forecloses his house. That night, Ariel arrives at John’s house with a painting she made for him. Realizing Max is right, John ends the relationship, sending Ariel away in tears. Over the next few weeks, Ariel continues to spend time with Max, and John remains distant. Upset that his daughter, Melanie, has rekindled her marriage with Mike, John leaves their Christmas Eve gathering for the local bar. Mike’s presence also derails the romantic intentions of Jacob Goldman, who returns home to urge his father to make amends with John. At the bar, Max innocently thanks John for repairing his favorite fishing pole, unaware that John sacrificed his relationship with Ariel to make him happy. On his way home, John suffers a heart attack and collapses in the snow. Max finds him on the ground and runs for help, later visiting him at the hospital to wish him “Merry Christmas” as he sleeps. In the morning, Max informs Ariel of John’s condition and she rushes to see him. In John’s absence, Elliot Snyder raids his house to repossess his belongings, informing Max that John owes more than $57,000 for incorrectly filing his tax returns. Before movers can begin unloading the furniture, however, Max barricades the front door and rigs the roof to dump snow on Snyder’s head. Sometime later, John recovers and marries Ariel with Max as his best man. After the ceremony, Max announces that Jacob convinced the IRS to waive the interest fees while he covered the remaining payments. When the newlyweds drive away from the church, Max laughs to himself, watching as John disposes of a rancid fish he planted in the back seat of the limousine. That night, Max goes in search of a date, leaving Jacob to spend the evening with Melanie, who has decided to follow through with her divorce after all.