  Observational limits on $y$- and $\mu$-type distortions can constrain
properties of magnetic fields in the early universe. For a Gaussian, random,
and non-helical field, $\mu$ and $y$ are calculated a function of the
present-day strength of the field, $B_0$, smoothed over a certain Gaussian
width, $k_c^{-1}$, and spectral index, $n_B$, defined by $P_B(k)\propto
k^{n_B}$. For $n_B=-2.9$ and $k_c^{-1}=1 {\rm Mpc}$, the COBE/FIRAS limit on
$\mu$ yields $B_0<40$ nG, whereas the projected PIXIE limit on $\mu$ would
yield $B_0<0.8$ nG. For non-scale-invariant spectra, constraints can be
stronger. For $B_0=1$ nG with $k_c^{-1}=1 {\rm Mpc}$, the COBE/FIRAS limit on
$\mu$ excludes a wide range of spectral indices given by $n_B>-2.6$. After
decoupling, energy dissipation is due to ambipolar diffusion and decaying MHD
turbulence, creating a $y$-type distortion. The distortion is completely
dominated by decaying MHD turbulence, and is of order $y\approx 10^{-7}$ for a
few nG field smoothed over the damping scale at the decoupling epoch,
$k_{d,dec}\approx 290 (B_0/1 {\rm nG})^{-1} {\rm Mpc}^{-1}$. This contribution
is as large as those of the known contributions such as reionization and
virialized objects at lower redshifts. The projected PIXIE limit on $y$ would
exclude $B_0>1.0$ and 0.6 nG for $n_B=-2.9$ and -2.3, respectively, and
$B_0>0.6$ nG for $n_B\geq 2$. The current limits on the optical depth to
Thomson scattering restrict the predicted $y$-type distortion to be $y\lesssim
10^{-8}$. (Abridged)
