Types of Account Balances
Most 401(k) plans—including the Leon Jones Feed & Grain 401(k) Plan—may include both traditional (pre-tax) and Roth (after-tax) account balances. Your QDRO must direct how each type of balance is treated:
- Traditional Contributions: These are taxable to the alternate payee when distributed. Rollovers into a traditional IRA are generally permitted without immediate tax consequences.
- Roth Contributions: Since Roth contributions are after-tax, distributions may not be immediately taxable if properly rolled over to a Roth IRA. Your QDRO should specify how Roth funds are to be allocated.

