Qualified dividends from employer stock

[Guest swwalden1]

Are the dividends from employer stock held in a 401(k) qualified? The employer shares were originally rolled into the 401(k) from an ESOP and the dividends are distributed directly to the acount holder. When I asked the 401(k) custodian about this, I was told that the company decided whether the dividends were qualified or not. Obviously I'm no expert, but that doesn't sound right.

[mbozek]

IRS pub 550 defines what are qualified dividends.