Question

In 2022 I received a dividend check from my 401k. I receive a form to claim this as income? I’m assuming I have to claim that this year.

Forum|Forum|3 years ago
January 16, 2023
2 replies
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In 2022 I received a dividend check from my 401k plan.?? Will I receive a form to claim this as income? I’m assuming I have to claim that this year.

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VolvoGirl

Employee

Why did you get a check? Maybe it wasn't a dividend but a distribution. Dividends should be reinvested in the account. Wait and see if you get a tax form for it like a 1099R or 1099Div.

T

Tgger921Author

Because I had accidentally checked the box to send me the dividends vs. rolling them back in.

VolvoGirl

Employee

So did you fix it now? To have the Dividends reinvested in the 401k? If they send it to you as a distribution you will owe tax on it and a 10% early withdrawal penalty if you are under 59 1/2.

D

dmertz

Employee

You'll receive a Form 1099-R reporting this as a distribution. You have 60 days following receipt of the distribution to roll the funds back into the 401(k) or to an IRA to avoid the distribution being taxable income (although it still must be reported on your tax return). If it's been more than 60 days, the deadline to do a rollover has passed.