Traditional vs. Roth Accounts
This plan may include both pre-tax (traditional) and post-tax (Roth) contribution sources. These need to be treated separately in your QDRO because taxes and distribution rules differ significantly.
- Traditional 401(k) funds are taxed upon distribution.
- Roth 401(k) funds are not taxed upon distribution if qualified.
The QDRO should specify how each type of contribution is treated. Failing to do this can result in tax confusion or improperly calculated amounts for the alternate payee.

