Author Topic: Handling tax advantaged dividends in ER...  (Read 759 times)

Holyoak

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Handling tax advantaged dividends in ER...
« on: December 20, 2016, 03:53:42 PM »
Hi everyone. 

Starting the New Year, I have decided to take dividends in my taxable accounts as cash, depositing them into my Vanguard settlement account, and reinvest as needed/use as spending $$$.  My question, what to/can I do with the dividends from my Roth, traditional, and inherited IRA's?  Currently they are still set up as reinvested - They kinda have to right?  I can't "take" dividends from these investments, and deposit them into the settlement account as cash, without a penalty or similar, right?  If I'm wrong, what are my options? 

Background: I am ER, age 50.  Thanks for the help.

seattlecyclone

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Re: Handling tax advantaged dividends in ER...
« Reply #1 on: December 20, 2016, 04:07:33 PM »
There's no law against setting up an IRA to deposit dividends toward a cash balance in the account, so that you can reinvest them in something else as you like.

MustacheAndaHalf

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Re: Handling tax advantaged dividends in ER...
« Reply #2 on: December 20, 2016, 05:41:34 PM »
Your Roth and Traditional IRAs have their own settlement accounts at Vanguard.  Your Roth IRA dividends go into the Roth settlement account, and can be used to buy shares in that Roth IRA.