My company allows for 2 kinds of contributions to 401k: pre-tax and after-tax.
After one reaches the limit for pre-tax, one can contribute to the
401k an extra 5% of yearly income, after tax. I did that last year.
I contributed the 5% thinking that it would go into a Roth kind of fund, since 
that would have been my best interest after the money was already taxed.
However, I called them and they said that the money went to a regular IRA, and
at withdrawal the gains would be taxed. 
I know I could take the money out and put it into a Roth with a 10% penalty +
tax on the gains, but since I haven't contributed to a Roth is there any way to
avoid at least the 10% penalty and move it from IRA to Roth?

Thanks

I don't have an answer, but just a heads up, a 401(k) and an IRA are
two different things.  Since you are doing this through your employer,
I believe you mean 401(k).  There is no Roth 401(k).