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>> It is my understanding that if I move my 401K to an IRA account, the "after tax dollars" become taxable and
cannot be moved into the IRA.<<

Just Yesterday I talked to my 401K rep and she told me that upon retirement, one of the options would be to roll the 401K into a "traditional" IRA, then withdraw from it as I need to. The only time it would become taxable in whole is if you then tried to roll it into a Roth IRA. But, as long as the money does NOT pass through your hands it's still tax exempt until withdrawl. I hope this helps.
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