Traditional vs. Roth 401(k) Contributions
With a 401(k), contributions can be traditional (pre-tax) or Roth (after-tax). A proper QDRO for this plan must:
- Specify whether both account types are to be divided
- Acknowledge the tax treatment for distributions (e.g., Roth accounts can be distributed tax-free if rules are met)
- Instruct the plan administrator on how to handle each account type separately
It’s crucial that the QDRO distinguish between Roth and traditional contributions if the participant has both. The wrong language could delay approval or trigger unexpected taxes for the alternate payee.

