No. of Recommendations: 2
What happens in a Roth stays in a Roth, to borrow a phrase from Vegas. In other words, the $5,000 annual limit (or $6,000 if over 50) refers strictly to what you can contribute each year. Then, any activity inside the account is simply part of the investing result, whether positive or negative. Dividends paid by companies are irrelevant, whether accumulated or reinvested. The only further consideration is when and what comes out of the distributions.
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