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<<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?>>

TMF Pixy:
<<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.>>

As a follow up, if I take the funds in that sweep account and invest them within the IRA, but not necessarily in the same stock, is that considered a new contribution that impacts the annual $2,000 limit? Or is it ignored in terms of the annual contribution limit because I'm using the IRA earnings within the IRA, and not adding money from my pocket?

(I think I know the answer; just making sure...)
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