1. Traditional vs. Roth Accounts
The Intech Trailers, Inc.. 401(k) Plan may include both traditional pre-tax and Roth after-tax account options. This matters because:
- Pre-tax distributions are taxable to the recipient unless rolled into another tax-deferred account.
- Roth distributions may be tax-free, depending on how long the account has been open and other IRS rules.
The QDRO must clearly specify whether the Alternate Payee (the non-employee spouse) is receiving Roth funds, traditional pre-tax funds, or both. Otherwise, tax treatment confusion may delay or complicate the payout.

