Traditional vs. Roth Contributions
Does the Bentley Laboratories 401(k) Plan include both traditional and Roth accounts? Most modern 401(k) offerings allow for both, and it’s vital to distinguish them correctly in the QDRO. Traditional 401(k) funds are pre-tax and taxed when distributed, while Roth contributions are post-tax and typically distributed tax-free.
Your QDRO should specify the allocation method — often by percentage or dollar amount — for each component. Mixing these up can lead to significant tax consequences later.

