Account Types: Traditional vs. Roth
Many 401(k) plans now offer both pre-tax (traditional) and after-tax (Roth) contributions. When dividing the Goodhart Sons, Inc.. 401(k) Retirement Plan, it’s important to identify whether the account includes one or both types:
- Traditional 401(k): Taxes are deferred until withdrawal. The alternate payee will owe taxes when they take distributions from their share.
- Roth 401(k): Contributions are made after-tax, and qualifying withdrawals are usually tax-free. A QDRO must specify how Roth funds will be allocated, especially if the account includes both Roth and traditional subaccounts.
You’ll want to ensure the QDRO language accurately reflects these distinctions, or the plan may reject it.

