Retirement Plan Valuation for QDRO Purposes
	General Rule. Defined contribution plans such as 401(k) and 403(b) are valued using recent account statements. This is usually very easy. However, a defined benefit plan is more complicated and an estimate based on life expectancy is used.

Valuation of Defined Contribution Plans such as 401(k) and 403(b).

The valuation of a defined contribution plan is simply the balance shown on a recent account statement.

The value of these plans is the amount of the vested account balances. This includes the amount contributed by the employee and the amount contributed by the employer. Easy to do, as long as all of it is vested.

Valuation of Defined Benefit Plans such as Pension Plans Which Provide an Annuity Benefit.

The valuation of a defined benefit plan which provides a monthly annuity payment for the remaining lifetime of the recipient or some other life is usually done by calculating the present value of the payment over the remaining lifetime of a measuring life.

This can be very complicated, especially where there are other factors, such as a survivor's annuity. Also, any such calculation is just an estimate, in part because of the variance of future interest rates.

Because of the complications, a good initial estimate is to look at the amount of the contributions. An employer should always provide this number.

Don't spend thousands of dollars arguing over the present value of a defined benefit plan.  Negotiate a number and stick with it.