I left an employer having both a Traditional and Roth 401(k). The entire Traditional 401(k) amount, and the 'earnings' from my Roth 401(k) were directly rolled over to my new Roth 401(k) account at my new employer. However, I received a separate check from that rollover paid out directly to me - this amount are the 'nontaxable contributions' I've made to my Roth 401(k) plan.
My question is... Can I cash this check without penalties and keep it for myself? Aon Hewitt (former 401k administrator) stated that they check is mine to do as I please and would not incur any penalties or taxes. I understand I would not get taxes taken out, but not sure if the 10% penalty would become effective - as this is solely my contributions and not my earnings I would be keeping. Or any other penalties that I am unaware of.
