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Hi Moooohead,

You can either reinvest the dividends or allow the cash to accumulate. Purely your choice.

I let the cash accumulate to either manually invest or to withdraw for expenses.

Keep in mind:

Contribution: Cash that is sent from the taxable world into a retirement account from wages, tips, commissions, etc.

Contributions cross the boundary from the outside, taxable world to the inside world of the retirement account where taxes are either deferred or eliminated.

Cash that is made inside of a retirement account by sales, dividends, interest, etc is just cash in the retirement account. At that point, it has no special status.

Does that help you?

All holdings and some statistics on my Fool profile page
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