Lux Investing
Investing dividend issuing stock in Roth IRA, can I keep the dividend or keep in IRA?
When the stock issues me the dividend check at the end of the fiscal year, do I have to reinvest that into the IRA or can I keep it out of the IRA, help please?
Public Comments
- It has to stay in the IRA. However if you take it, it would be considered a distribution.
- The last poster is correct. Anything you withdraw from an IRA account is considered a distribution and it will be taxed accordingly. FYI...not reinvesting dividends is about the dumbest long term move you can possibly make.
- Everything stays in the IRA... could be directly re-invested with that stock/fund..or accumulated to buy something else later. Either way...it will keep " growing" more money...which is tha main purpose of the IRA... a bundle, a nest-egg, a pillow... down the road, when you'll need it more than you ever know. ( ...and appreciate it! )
