designated distribution
(1) Designated distribution (A) In general Except as provided in subparagraph (B), the term “designated distribution” means 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. (B) Exceptions The term “designated distribution” shall not include— (i) any amount which is wages without regard to this section, (ii) the portion of a distribution or payment which it is reasonable to believe is not includible in gross income, and (iii) any amount which is subject to withholding under subchapter A of chapter 3 (relating to withholding of tax on nonresident aliens and foreign corporations) by the person paying such amount or which would be so subject but for a tax treaty, or (iv) any distribution described in section 404(k)(2). For purposes of clause (ii), any distribution or payment from or under an individual retirement plan (other than a Roth IRA) shall be treated as includible in gross income.