Accumulation Distribution Law and Legal Definition

According to 26 USCS § 665 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes And Surtaxes; Subchapter J. Estates, Trusts, Beneficiaries, And Decedents; Part I. Estates, Trusts, And Beneficiaries; Subpart D. Treatment Of Excess Distributions By Trusts], accumulation distribution means, “for any taxable year of the trust, the amount by which-- (1) the amounts specified in paragraph (2) of section 661(a) [26 USCS § 661(a)] for such taxable year, exceed (2) distributable net income for such year reduced (but not below zero) by the amounts specified in paragraph (1) of section 661(a) [26 USCS § 661(a)].”