### Question
What does designated distribution mean?


### Answer
**Designated distribution** has the following meaning in *26 U.S.C. § 3405*:

> any distribution or payment from or under—


(i) an employer deferred compensation plan,


(ii) an individual retirement plan (as defined in section 7701(a)(37)), or


(iii) a commercial annuity

#### Citation:
  - *26 U.S.C. § 3405*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 24-COLLECTION OF INCOME TAX AT SOURCE ON WAGES**

