IRA distributions are withdrawals of funds from your account. There are four main distribution options on the Transfer page, which correspond to specific distribution codes on the tax form 1099-R. Early Distribution. If you are under age 59 ½, you will see the option for an “early distribution,” which may mean that you will pay a 10% tax penalty along with any taxes owed on the withdrawal. Normal Distribution. If you are over 59 ½, you will see the option for a “Normal Distribution,” which is ...