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I have a 401(k) from a former employer that I have just let sit for about 4 years. My contributions were after tax, but of course the employer match and all earnings are subject to tax. I want to roll this 401(k) into an IRA. I was told by the 401(k) company that I would receive a check for the after tax contributions I made while employed (only about $650). The rest of the money (the amount subject to tax) will be rolled into my IRA. Now the kicker, I was told that I don't have to pay any tax on this distribution (since I did already) but I also don't have to pay the normal 10% early withdrawl penalty. I thought that ANY amount not rolled over would be subject to this penalty.

Any insight?

Thanks in advance!
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