The amount distributed for tax purposes is the total amount distributed. That's the sum of the amount sent to you, the amount sent to the feds and the amount sent to the state. If you received $80k, the feds received $26k and the state received $12k, the amount in box 1 of the Form 1099-R will be $118k, box 4 will be $26k and box 14 will be $12k.
The amounts withheld are apparently amounts that you asked to be withheld, otherwise the amounts would have been different. With this $118k added to the $120k of W-2 income, the 22% withheld for federal taxes seems seems insufficient (slightly insufficient if you are married filing jointly, more so for other filing statuses). 10% withheld for state taxes seems like it might be a bit higher than necessary regardless of the state.
