A torque distribution system is provided for a vehicle that uses a planetary gear set, an electric motor, and a torque-transmitting mechanism to control a torque difference between two axially-aligned wheels on a vehicle. The torque distribution system includes a planetary gear set having a first, a second, and a third member. The torque-transmitting mechanism is selectively engagable to connect the first and second members of the planetary gear set for common rotation. The second and third members of the planetary gear set are continuously operatively connected with the first and second rotatable connecting elements, respectively. The motor is continuously connected with the first member of the planetary gear set such that the motor adds or subtracts torque to the first member when the motor is energized and also adds or subtracts torque to the second member when the motor is energized and the torque-transmitting mechanism is engaged.