1. Traditional vs. Roth Account Balances
Like many modern 401(k)s, the Neil Huffman Volkswagen, Inc.. 401(k) Profit Sharing Plan & Trust may include both traditional (pre-tax) and Roth (after-tax) balances. Your QDRO must specify how each type of account is to be divided:
- Traditional balances are subject to future taxation upon withdrawal.
- Roth balances have already been taxed and may offer tax-free withdrawals later, depending on qualifications.
If your share comes from both sources, we recommend clearly stating the allocation in your QDRO so the plan administrator doesn’t misapply the order.

