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Subject:  Re: Dividend Distributions and 401K Date:  12/23/1999  11:55 AM
Author:  mphipps Number:  16809 of 88543

<<Example: You hold 100 shares valued at $10, so your account is worth $1,000. The plan receives interest, dividends, and captial gains amounting to $1 per share, so now your account should be worth $1,100. That increase in value could be reflected by giving you another 10 shares worth $10 each or by increasing the net asset value or unit/share price of your present 100 shares to $11 each. Using either method, your account still increases in value by the $100 required because the plan received a payment of interest, dividends and capital gains.>>
Yes, all this unit value side of the equation works fine unless the price of the shares of portfolio of mutual fund changes.
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