A QDRO for a 401(k) Retirement Plan; 403(b); 457 Plans
	General Rule. A defined contribution plan is fairly easy to value because the plan account depends on employee (and employer) contributions, not years of service or age. After division by a QDRO, it is a more flexible account with more options available to the former spouse who receives the QDRO share (alternate payee). State and local government 453(b) and 457 plans are similar.

A QDRO for a 401(k) Retirement Plan; 403(b); 457 Plans

A 401(k) plan is one of the various forms of a defined contribution plan. Local and state government plans such as 403(b) and 457 plans are similar.

Since the page on defined contribution plans applies to a 401(k) plan, that information will not be repeated here.

My advice to a former spouse who is getting a share of a 401(k) plan pursuant to a QDRO, is that he or she roll it out into their own 401(k) plan. Most existing 401(k) plans will accept rollovers from other 401(k) plans

Otherwise, roll it out into an IRA. However, be careful about the restrictions on IRA withdrawals. An IRA is a much less flexible retirement tool, as compared to a 401(k) plan. Also, you will likely get stuck with a 10% early withdrawal penalty if you take an early distribution from an IRA plan. So, if you have to take a distribution as soon as a QDRO is processed, take the distribution before you roll any money into an IRA.

In other words, I suggest that a former spouse who receives a QDRO portion of a 401(k) plan should remove that account from the control of the participant spouse's employer.

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