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Community: Investing Wiki

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401k withdrawal taxation: Original post by Ciaran John of Demand Media A 401k account usually contains shares in mutual funds and stocks, some of which may pay dividends. The plan custodian receives the dividends and the proceeds are either reinvested in other securities or held in a cash account within your 401k plan. You usually have to pay income tax rather than capital gains tax when you withdraw dividends and other…

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