Types of Accounts: Roth vs. Traditional 401(k)
One issue we often see is the failure to address whether the account includes both traditional and Roth components. Many participants have both types of contributions, and each type is taxed differently. Traditional 401(k) funds are taxed upon withdrawal, but Roth contributions and earnings (once qualified) are not.
Your QDRO should specify whether the division applies proportionally across both account types or just to one. If you don’t specify, the plan administrator may do it at their discretion—which can lead to unexpected taxes or unfair results.

