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I was wondering how 401k plans treat diviedend tax. Like if I hold a mutual fund in my 401k that mutual fund pays some type of tax on the dividends on the stock it owns. Do I as an investor in that fund thru the 401k end up paying dividend taxes indirectly even though the mutual fund is in a 401k ??? Just wondering if the person that invests through a 401k is treated differently then the person that invests in the same mutual fund but not thru a 401k... thanks!
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