Does reinvesting dividends/capital gains in an IRA count?

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JustinR
Posts: 291
Joined: Tue Apr 27, 2010 11:43 pm

Does reinvesting dividends/capital gains in an IRA count?

Postby JustinR » Sun Sep 01, 2013 7:23 pm

Do reinvestments of dividends and capital gains count as a contribution in your Roth IRA? If you've already contributed the max for the year, and more is auto-reinvested by Vanguard during the year, what happens?

On a similar note, does reinvesting dividends/capital gains automatically from OTHER funds count as contributing?

livesoft
Posts: 39694
Joined: Thu Mar 01, 2007 8:00 pm

Re: Does reinvesting dividends/capital gains in an IRA count

Postby livesoft » Sun Sep 01, 2013 7:28 pm

no, reinvesting distributions does not count towards contribution limits.

if you have non-ira account funds auto-invest in your IRA, then that's a contribution.
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masteraleph
Posts: 289
Joined: Wed Nov 04, 2009 9:45 am

Re: Does reinvesting dividends/capital gains in an IRA count

Postby masteraleph » Sun Sep 01, 2013 7:28 pm

1) No. The money is all within your IRA, so it's not a contribution.

2) Again, if the money is within the IRA, it's not a contribution.

JustinR
Posts: 291
Joined: Tue Apr 27, 2010 11:43 pm

Re: Does reinvesting dividends/capital gains in an IRA count

Postby JustinR » Sun Sep 01, 2013 7:35 pm

livesoft wrote:if you have non-ira account funds auto-invest in your IRA, then that's a contribution.

Thank you. If I do this (fund my IRA by diverting distributions from my taxable account), I wonder if Vanguard would automatically shut me off at $5500. I plan on topping it off at the end of the year. Does Vanguard keep track of contributions or is that something I have to do myself?

Edit: Never mind. Vanguard doesn't let you do this.


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