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No, it doesn't matter what you do with the dividends as they don't count as contributions within the IRA or get taxed as IRAs are designed to have tax-advantages(The idea of tax-deferral or tax-free growth is quite nice). If you don't reinvest them then they'll collect in a money market fund most likely which is likely to have a lower CAGR than a stock or fund assuming it is near the average.

Dividends in a taxable account are another story though.

JB
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