I started contributing to my employer's 401k last year.My employer matches my contributions dollar for dollar with company stock. The company stock pays dividends.I received a 1099 form in January and will have to file a 1040 form for my taxes this year. The dividends count as income. Why? I thought capital gains, dividends, and interest were tax-deferred in 401k's and IRA's. Why must I pay tax on dividends from company stock in my 401k?