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To discourage the use of IRAs for purposes other than normal retirement, the law imposes a 10% additional tax on certain early distributions of these funds. Early distributions are those you receive from a qualified retirement plan or deferred annuity contract before reaching age 59 1/2.
She can take the money out to pay off the mortgage.
There are exceptions to this 10% additional tax for early distributions that are:
If her Form 1099-R does not have a distribution code "2", "3", or "4" in the box labeled "distribution code(s)", or if the code shown is incorrect, you must file Form 5329 to claim the exception.
I hope this information is helpful,