Yes, they are permitted to go after ANY asset you mau have to include retirement, 401k, insurance benefits......

Not unless it is issued by court order and comes through as a QDRO.. which I really don't see how it could. 401(k)'s are protected from bankruptcy, creditors, and the like.... The only ones I have seen place a levy and withdraw funds are for child support, and that must like I stated come though as a qualified domestic rel. order.
IRA's are not the same... at some point he is going to want to withdraw this money... if put into an IRA or bank account it can be taken.. the loans are going to get paid one way or another....

Daremull is incorrect as federal student loans are NOT a proteccted asset and are subject to the same laws that govern child support. Just as they can attach a 401 for child support so can they for a federal student loan. Thier are only 3 things that can cause attachement of a 401, SSI, Unemployment, disability and failure to pay a federal student loan is one of them - they can also attach you federal and state tax return.

Thanks for all the helpful responses. We are actually divorcing and he would be getting a portion of MY 401K through a QDRO. I am concerned that the government would take the money anyway, so it would make no sense for him to QDRO my 401K in the divorce settlement.

OK---I work for an administrator... we would be the ones to cut the check....
We COULD NOT unless an IRS levy was issued.. and approved through the same steps as a QDRO issue the check from the 401(k) To ANYONE but the participant. --
Child support levies occur on RARE occasions.. Child support themselves cannot send us anything stating we must pay them... even an IRS levy does not guarantee payment... QDROS must be approved by both the plan attorney and the administator's attorney..
So if he is entitled to a portion of your 401.. he will get it... it will then be put into a 401(k) account in his name/ his social.. if they levy it --that's his problem.. I doubt the lawyer would leave your 401(k) out for that purpose.

In Private Letter Ruling 200342007, the IRS ruled that a 401(k) Plan does not violate Code § 401(a)(13) by honoring a court ordered garnishment against a participant’s 401(k) account