Secondary distribution of incomeaccount reflects the transformation of the balance of primary incomes by sectors into their disposable incomes, as a result of receipts and payments of current transfers.
This means that the distribution from the IRA would be recognized as income by the account owner, and the gift would later be included on his or her tax return as an itemized deduction.
Taking into account the existence of hidden income, the Gini coefficient of household incomedistribution is remarkably higher than the 0.47-0.50 calculated by different experts.