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The IRA distribution will be considered income for her and has to be reported as income when she files her personal tax return, to determine what taxes and credits she may recieve, she has to determine how much the distribution will be and what federal tax bracket she will be in, also state tax bracket as well. To minimize her withdrawals she can do some in this tax year and wait for January 1 to withdraw the rest as then the income is reported in two different tax years.