In your personal portfolio account, not a qualified 401K retirement account, you get paid a dividend and it automatically gets reinvested, (meaning you buy more of this stock or fund), but it never touches your hands or enters into your bank account.

What does that mean from a tax liability standpoint at the end of the year?

Answer rating: 100% (QA)

Reinvesting dividends within a personal portfolio account does not trigger a taxable event in the ye... View the full answer