rsl5483
New Member

I take 401k dividends as cash to my checking (retired 2 yrs ago) last year I got a 1099-DIV this year I got a 1099R are dividends ordinary income or LT capital gains?

My understanding was that cash dividends from my 401k were Long Term Capital Gains (qualified stock) because they were never in my 401k but I am confused why I got a 1099R this year. One of the reasons I took the cash payment option was to lower my tax rate on the dividends.  Is my understanding incorrect?