What Is Retirement Plan Distribution? 
When you look at retirement planning think of it as 4 phases . 1 . contributions 2 . accumulation 3 . distribution 4 . transfer . Contribution means how much money will i save each year in my savings vehicle . For example if i have a 401k and i decide i 'm going to contribute $ 5,000 a year that 's my contribution . Accumulation means my $ 5,000 will grow over time in my 401 k savings vehicle.for example $ 5,000 grows in 20 years @ 7 % would add up to $ 219,325 . Distribution is i have saved $ 219,325 in my 401k account , I 'm retired now and i need an income . You decide you want to take out 10 % of 219,325 . Your withdrawal would be $ 21,932 . Now you can have early withdrawals but you have to be aware of which savings vehicle you have because there might be penalties and fees for early withdrawal depending on your age.Some savings vehicles have no penalties . You might want to look at different savings vehicles tha t suite your needs . Transfer is passing your money and assets to your kids , charity , or church when you pass away . Or maybe you have everything put into a trust . 