Reinvested dividends question

Posted on: December 29, 2011 at 17:03:33 CT

When they are reinvested at that days market price this increases my cost basis, but I didn't pay for the dividend per se. My gain in my ROTH would be higher if this was not used as a cost to me. I know for taxable accounts this is more favorable, but should I figure my gain minus the dividends since I didn't pay for them?

Hope that made sense and thanks