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A distribution is a payment made from a qualified retirement plan to the account holder or beneficiary. Qualified plans include IRA, 401(k), 403(b), 457, etc. The distribution is a taxable event, which is reported to the IRS and must be reported on your annual income tax returns.

Expanded Definition

Disambiguation: Distribution also refers to the system of warehouses that allows a manufacturer or importer to ship usually truckload quantities from his factory. The distribution center typically holds quantities of the product and ships mixed case lots to individual stores or their regional distribution centers. The distribution center may be owned by the manufacturer, the retailer or a middle man distributor.

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