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Are mutual fund dividends credited in 401k accounts? |
The mutual funds in our 401kl pay diveidends and capital gains. yes and they are automatically reinvested for you in the percentages you originally chose. for example A fund 60%, B fund 30% C fund 10%. when a company does a dividend (no schedule for that) it will credit usually the same day. Capital gains are also displayed right away. You will see the value of your portfolio change daily (because of the stock market variations) but you won't physically have the money until you sell i would ask your principle adviser if you dont have one get one The dividends in a 401K are reinvested in the stock or mutual fund to defer tax. |
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