I never see dividends in my 401K statements. What happens to the dividend paid for the stocks in my 401K a/c?

Answer 1

I'm assuming some or all of your 401(k) is invested in variable funds, those funds in turn own stocks, and you are referring to the dividends paid on those stocks.

When those dividends are received they are simply added to the fund, as are capital gains on stocks the fund trades, where they can be used to purchase more stocks or bonds or held as cash.

Those dividends increase the value of your holdings in the fund.

Note that regardless of how the fund made its money (dividends, cap gains) all that income is taxable as ordinary income to you when you withdraw money from the fund. It is not treated as dividends or capital gains.

Answer 2

If you are talking about the dividends paid by stocks held by the mutual funds you own, you will not see them. They are paid to the fund and influence the performance of your fund. If you own actual shares of stock and not a mutual fund, then you may have received them in the form of additional shares (likely fractional shares) as part of a dividend reinvestment.

Answer 3

In a 401(k) any dividends are just added to the balance. That assumes your plan allows you to invest in individual, dividend producing stocks. If you are invested in mutual funds those dividends go to the overall profit/loss of the fund.

Answer 4

You don't OWN the stocks. the money is in a STOCK FUND that buys the stocks.

Answer 5

I dont know :) seriously I don't