Does anchor text carry through 301 redirects?

[postlink]http://mattcuttsvideos.blogspot.com/2009/02/does-anchor-text-carry-through-301.html[/postlink]http://www.youtube.com/watch?v=70LR8H8pn1Mendofvid
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On February 26, 2009, Google software engineer Matt Cutts collected questions on Google Moderator and answered many of them on video.

Mharris from New York asked: Does anchor text carry through all 301 redirects? Will there be a penalty for sites that do this as their sole way of link building?

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