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Hi Bill. I presume you are over age 59-1/2 and therefore taking penalty free distributions.

When your 401K or IRA contains both before and aftertax contributions, a portion of every distribution is considered a refund of your aftertax contribution. Check the IRS Publication on IRAs for details. There is a worksheet for this in the instructions for form 1040 I believe.

So in this case $5520-4864.09 is the amount your 401K custodian calculated as the aftertax portion of your payment. The rest of it is a taxable distribution. I would think the ratio of 5520-4864.09 to $22K should be the same as the ratio of $5520 to the total value of your account on the date of distribution. If in doubt, ask your 401K custodian to provide details of the calculation.
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