I was quite surprised when I noticed the posting of two dividend distributions in one month for the same security on the Fidelity 401K. However, after  researching the distributions, I determined that one was a capital gain distribution and one was a dividend distribution: but both were reported as dividend and interest distributions.

Let me provide an example where I have the same fund in as Fidelity 401K, IRA, and an Investment account:

Fidelity Capital and Income (FAGIX) - On 6/9/ 2012 had a Capital Gain Distribution and on 6/30/2012 had a Dividend distribution.

On my 401K both showed up as Transaction Type: Dividends and Interest

On my IRA and Investment Accounts, distibutions are posted correctly as a a SHORT-TERM CAP GAIN and a DIVIDEND Received.

A while ago, I contracted Fidelity about this misstatement of Transaction Type and was somewhat dismayed by them as being told that it was something they always did (even though it is incorrect.)  Historically incorrect is still incorrect.

Perhaps publicly airing this anomaly will help bring about a correction.