OT. Quick 401k mutual fund/ dividend and fees question

[nutfromSEC117]

when you get your Year end dividends from mutual funds in December .....is the fee from the mutual fund already factored and taken out of that dividend (or) is it something I will have to pay when I start cashing out? Example. My RUFB mutual fund paid a $400 dividend in December did RUFB already take its .016 per $1000 or will I have to factor that in with potential taxes at payout time

Thanks

 

[wcfan10]

when you get your Year end dividends from mutual funds in December .....is the fee from the mutual fund already factored and taken out of that dividend (or) is it something I will have to pay when I start cashing out? Example. My RUFB mutual fund paid a $400 dividend in December did RUFB already take its .016 per $1000 or will I have to factor that in with potential taxes at payout time

Thanks

You should just have to declare your $400 dividend in your taxes. Any fees are already included in the share price.

 

[superfan01]

They already factored in the fees in the price of the fund so you don't do anything.
Also you don't declare dividends on your 401k every year as the above poster mentioned.
Taxes on a 401k are only paid when you cash out in retirement.

 

[nutfromSEC117]

Thanks just looking for clarification on fees. Knew the rest , was researching funds from employer . Already getting some good returns just wanted to make sure there were no more hidden fees.

Thanks again!

 

[wcfan10]

You should just have to declare your $400 dividend in your taxes. Any fees are already included in the share price.

Just to be clear, if your Mutual fund is inside your 401k, then you don't have to declare nothing. .You'll eventually pay ordinary income taxes when you withdraw from your 401k.

 

[RUsilencer]

Expenses of funds are calculated daily against the NAV. For your 401k, it's all tax deferred unless you are doing a Roth 401k (for which its tax free at distribution)