Thank you for your question.
You are absolutely correct that your mother will have to pay tax on any distributions she receives.
If she were to take the full distribution in one year, she would be in the 15% tax bracket.
While that's not so bad, (and she can have her Federal taxes
deducted from her IRA) , what she really needs to take into account is her Social Security Benefits.
Generally, Social Security benefits, in and of themselves, and not taxable, UNLESS you put other taxable income
with them.......like an IRA for example, and those benefits could become up to 85% taxable.
A better alternative
may be to spread the IRA distributions over a couple of years, thus keeping her taxable SS benefits at a minimum. For example, she may take part of her IRA in Nov or even December of 2013, and then take the rest in January 2014.
You will probably want to find a local
CPA, EA, or tax pro to let them crunch the numbers for you.
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