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I am considering opening up a Roth IRA account with an online broker and have been researching the regulations. I have read most of the IRS publication 590 (Zzzzzz)... I intend to use the F4 method.

The way I understand it, contributions to the account are taxable in the current year but are tax-free at the time of distribution at age 59.5. The issues I am not clear on are:

As I sell one stock to buy a new F4 stock are gains that I realize tax deferred like a traditional IRA or are they taxable in the current year?

Are dividends that I receive from my F4 stocks that I reinvest tax deferred or taxable in the current year?

Do reinvested dividends count aginst the legal limits for contributions to the Roth IRA. In other words if I receive $200 in dividends and reinvest them, does this mean that I can now only contribute $1,800 cash?

Brad Eaton

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