What is a distribution? IRA distributions are withdrawals from a self-directed IRA, 401(k), or health savings account (HSA). Distributions can be taken in cash or in kind (in which case the actual asset would become your personal property). Distributions may involve taxes or penalties depending on your account type and your age. New Direction Trust Company will report annual distribution activities via Form 1099-R, which will be issued to you and directly to the IRS.