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scfaris
New Member

I have a 1099 div from 401K. Do I enter in this years return? I thought I pay taxes only when I withdraw from 401K?

I show both dividends and Capital Gains on 1099 DIV.
1 Best answer

Accepted Solutions
TomD8
Level 15

I have a 1099 div from 401K. Do I enter in this years return? I thought I pay taxes only when I withdraw from 401K?

Are you sure it's from your 401K?  In tax-deferred accounts such as IRAs, 401(k)s and annuities, there is no current taxable event when dividends are paid within the plan; therefore no 1099-DIV is sent to the investor.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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3 Replies
TomD8
Level 15

I have a 1099 div from 401K. Do I enter in this years return? I thought I pay taxes only when I withdraw from 401K?

Are you sure it's from your 401K?  In tax-deferred accounts such as IRAs, 401(k)s and annuities, there is no current taxable event when dividends are paid within the plan; therefore no 1099-DIV is sent to the investor.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
BigB2238
New Member

I have a 1099 div from 401K. Do I enter in this years return? I thought I pay taxes only when I withdraw from 401K?

Did you find the answer. I am in a similar situation.. got a rollover to ira from 401k, the dividend came afterwards and was deposited into the ira account - meaning was not used as a distribution. I still got a 1099-div for this, I need to figure out how to claim it as expense after reporting it in income section.

Critter
Level 15

I have a 1099 div from 401K. Do I enter in this years return? I thought I pay taxes only when I withdraw from 401K?

Contact the 1099-Div issuer ... it should NOT have been issued for a 401K or IRA account.  

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