“Q: We are taught that a man can unite all his “principles” into one – what does this mean?
A: When an adept succeeds in doing this he is a Jivanmukta: he is no more of this earth virtually, and becomes a Nirvanee, who can go into Samadhi at will.
Adepts are generally classed by the number of “principles” they have under their perfect control, for that which we call will has its seat in the Higher EGO, and the latter, when it is rid of its sin-laden personality, is divine and pure.
Q: What part does Karma play in dreams? In India they say that every man receives the reward or punishment of all his acts, both in the waking and the dream state.
A: If they say so, it is because they have preserved in all their purity and remembered the traditions of their forefathers. They know that the Self is the real Ego, and that it lives and acts, though on a different plane. The external is a “dream” to this Ego, while the inner life, or the life on what we call the dream plane, is the real life for it.
And so the Hindus (the profane, of course) say that Karma is generous, and rewards the real man in dreams as well as it does the false personality in physical life.
Q: What is the difference, “karmically”, between the two?
A: The physical animal man is as little responsible as a dog or a mouse. For the bodily form all is over with the death of the body.
But the real SELF, that which emanated its own shadow, or the lower thinking personality, that enacted and pulled the wires during the life of the physical automation, will have to suffer conjointly with its factotum and alter ego in its next incarnation.”
H. P. Blavatsky
The Mark Of God: Understanding Your "I AM Presence" 