If I am receiving 401K distributions(which include reinvested dividends) and State and Fed taxes are withheld, will I received a 1099-R and 1099-DIV ?

Forum|Forum|2 years ago
January 13, 2024
3 replies
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will I pay taxes on both the distribution and the dividends

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Best answer by VolvoGirl

No only a 1099R. You don't report dividends or interest, buys or sells in a 401K or IRA. The distribution is taxed as ordinary income and you don't get the dividend or capital gains lower tax on it. That's one of the disadvantages of 401K and IRA. It all comes out at your tax rate.

VolvoGirlAnswer

Employee

Bsch4477

Employee

You will receive a 1099-R only.

DoninGA

Employee

Dividends are re-invested within the 401(k) account and are not reported to you on a Form 1099-DIV. You will only receive a Form 1099-R for the distribution.

To enter, edit or delete a form 1099-R -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button