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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75384  
Subject: Re: Roth Possibilities?? Date: 1/21/1998 7:06 PM
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Greetings, ProudToBeAFool, and welcome.

<<Can a Roth IRA be self-directed? If so, would it make any sense to set up DRIPs in each of the Foolish Four as the investments in this self-directed Roth?>>

Yes, a Roth can be self-directed. Any broker can help you set up the account. However, establishing a DRIP for each stock therein may be difficult. I know of no company that has a DRIP option that will do so within an IRA, let alone a Roth. Some brokers (USAA is one) will allow no-fee reinvestments in stocks if the broker has holdings in that stock. They simply make a bookkeeping entry at the current market value to sell you the full/fractional shares involved out of that broker's inventory. Most, though, simply collect the dividends as cash and put it in the money market sweep account within your IRA.

Regards…Pixy
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