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Also, do they pay them even if the funds have been performing poorly this quarter? This is the first quarter I've contributed to my company's plan.

2006-06-28 09:37:04 · 7 answers · asked by marstl51 2 in Business & Finance Investing

7 answers

401K plans do not pay dividends. The funds you invest in inside the 401K plan may or may not. Usually, mutual funds pay dividends only once a year. Dividends are also usually paid out every year regardless of how well the fund does (the NAV of the fund), but the amount may vary every year.

2006-06-28 09:41:33 · answer #1 · answered by akg 3 · 0 0

I don't think 401k's pay dividends to you. If the fund pays a dividend, it will most likely go straight to your account. Regardless, read your company's policy about its 401k. The underlying fund may very well pay dividends quarterly, that doesn't necessarily mean that it will go in your account quarterly.

2006-06-28 09:41:50 · answer #2 · answered by jlamb_2000 2 · 0 0

NO. 401k plans are invested in Mutual money and shares. Many agencies do not pay a dividend nor activity. in user-friendly terms a money marketplace account does and that they are primary 2% No funds is dispersed till retirement age.

2016-12-08 13:36:28 · answer #3 · answered by ? 3 · 0 0

Most 401(k) plans offer some selection of variable funds and at least one fixed fund. Interest is paid on the fixed funds on a regular schedule (daily, monthly, etc.) established by the administrator of the plan.

But the tem "dividend" does not apply to a 401(k).

2006-06-29 09:49:06 · answer #4 · answered by Anonymous · 0 0

Dividends can be paid by individual companies made up in your 401k plan. These dividends can be paid whenever the hell they want. When they do, the $$ is reinvested into your 401k account.

2006-06-28 11:38:13 · answer #5 · answered by Amanda 3 · 0 0

I don't think you can take money out of your 401k until your 59 1/2 without a 10% penalty. If you're already that age then you'll have to check with your administrator.

There might be extenuating circumstances that would allow you to take money out earlier.

2006-06-28 09:42:16 · answer #6 · answered by eschaton 3 · 0 0

You don't seem them because dividends are not paid out in a retirement plan. Also, it depends on your selection of instruments. Most are linked to a growth plan that does not warranty income development.

2006-06-28 10:13:11 · answer #7 · answered by ntoriano 4 · 0 0

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