<prompt> Human: As I filled out the online application to open a traditional IRA through Vanguard, I was uncertain about the choice offered to either reinvest dividends and capital gains or to transfer to your money market settlement fund. I assumed an IRA would always function like a closed system until retirement, at which point I would begin drawing from it, rather than an investment account that would produce dividends I would take. The customer service rep was evasive in clarifying what is the normal way of approaching an IRA, emphasizing that this is my choice to make. While I appreciate that this response leaves the decision up to me, Im not really in a position to make an informed decision. From what I understand, reinvest is the normal option with an IRA. Is this correct?  <response>: The money market settlement fund is still within the IRA. Its basically the checking account that you use to buy other funds with. Id choose to reinvest dividends just for less work. Neither option has any tax consequences. 