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Think of it like this...

You can send a check for $2000 total to the manager of your IRA. That is the MAX. Pretend that you decide not to buy any investments with the money. You are just going to let it sit in cash and earn 3% interest per year. You are not allowed to send in more than $2000, no matter if you do decide to buy an investment (which would cost you some fees from the manager of the IRA).

And any money that gets generated from your money being in the account (dividends included) can be re-invested any way you choose, without it counting as a contribution. A contribution is any time you actually send money to the account.

Hope that makes sense,

Good luck,
the hendrys

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