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I'm over 59.5 and I'll still be still working (and having earned income) for several more years. Suppose in calendar year XXXX I put $$$$ in a Roth account and use the funds to buy a dividend payer. Then I take all the funds out (or maybe just the amount of the dividend). If these monies are now tax-free, I have succeeded in capturing the dividend payment without having to pay any tax on it. --Correct?

Correct as long as your first Roth contribution was in year XXXX-5 or earlier. In that case all your Roth distributions for life are "qualified," which means that they are not subject to tax or penalty.

Maybe, if your first Roth contribution was later. In that case you apply the ordering rules of distributions to determine whether a particular one is taxable.

See Chapter 2 of Publication 590.

Rule Your Retirement Home Fool
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