Undistributed funds in an IRA continue to appreciate or depreciate depending upon the performance of the underlying assets. If you leave the money in your IRA in a CD, the funds will continue to gather interest. If you have the funds in a stock fund, then your balance will depend on whether the stock market goes up or down. There is no difference in behavior that depends on whether or not you have begun withdrawing funds - it is all in your investments.

It depends on how the distribution is set up. If you purchased an annuity, then no more money accumulates to you. If you took a lump sum withdrawal, then interest accrues.

Yes, if the money is invested in interest bearing securities.