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I own a company ESOP shares in my 401k, there is an option for an election of the dividend
Hi,
I buy into my company's ESOP in my 401k. As of now, the dividends re-invest in my ESOP. However, there is an option to be paid in the dividend directly and states that it is taxed as normal income(even though it is still in the 401k), i.e. that is no penalty.
Why is this taxed as normal income and not under capital gains for the dividend?
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‎February 5, 2024
5:49 PM