A Distribution Event is a situation where money is taken out of a retirement account or other tax-advantaged investment plan. These events usually happen when you retire, reach a certain age, or meet specific requirements like becoming disabled or leaving a job. In some cases, distribution events can also include things like taking required withdrawals or receiving payouts from a stock plan. Depending on the type of account, distributions may be taxed, and if the money is withdrawn too early, there could be penalties. Understanding what qualifies as a distribution event — and the rules that come with it — is important to avoid unexpected taxes or fees.