Distribution

Definition

Amount paid from a retirement plan as a reportable transaction. A distribution can  be processed as a direct rollover  or paid to the participant.

Referring Cite

IRC § 401(a)(9) for RMDs, IRC § 72(t) for early distribution penalties,  IRS Publication 590 for IRAs, IRS Publication 575 for qualified plans, Treas. Reg. 1.401-1(b)(1)(ii)) for triggering events

Additional Helpful Information

• A distribution that is not rolled over within 60-days must be included in the distributee’s (participant , beneficiary or alternate payee )  income for the year.
• Tax issues on Distributions from Retirement Plans – IRS Presentation

   

Related Articles Tutorial or Other Content

• Substantially Equal Periodic Payments
• Roth IRA Distributions
• Rollover contribution
• Direct rollover