### Question
Can you define what qualified designated distribution means?


### Answer
**Qualified designated distribution** is defined as the following in *26 U.S.C. § 852*:

> any distribution made by the investment company if—


(i) section 301 applies to such distribution, and


(ii) such distribution is designated (at such time and in such manner as the Secretary shall by regulations prescribe) as being taken into account under this paragraph with respect to the non-RIC year

#### Citation:
  - *26 U.S.C. § 852*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter M-Regulated Investment Companies and Real Estate Investment Trusts > PART I-REGULATED INVESTMENT COMPANIES**

