The monograph is devoted to the analysis of the transformations taking place in the system of income distribution in the modern Russian economy. The fundamental bases of functioning of income distribution system as well as mechanisms of its transformation are investigated. The monograph analyzes the contradictions in the transformation of income distribution system and identifies the main ways of solving them, proposes an alternative model of income distribution based on the restoration of social orientation of the distribution process and the achievement of economic efficiency through the transition to an innovative type of economic growth. Particular attention is paid to the problems of state participation in distributional relations, its role in resolving the contradictions of the transformation of income distribution system is substantiated.