<prompt> Human: In early 2016 I rolled over a 401k from an old job to a Vanguard traditional IRA. I put everything in into the 2040 target retirement fund VFORX. At the end of December in 2016, as well as just yesterday, I had dividends disbursed to me. I had set up my account to auto-reinvest, so thats what happened both times. My questions:1 Should I be paying taxes on these dividends?2 How is the amount determined?3 Should I expect these disbursements to continue to happen at the end of every year from here on out? Is there any reason they would stop? Thank you in advance for any help you can provide.  <response>: If the funds are held in an IRA, you wont pay taxes on the dividends now. You would only pay taxes if they were held in a taxable account.Vanguard target retirement funds issue dividends in December. Some other funds issue dividends at other times during the year as well. Issuing the dividend decreases the share price, but you will buy more shares with the proceeds if you are set to re-invest. 