Yes. Doesn't matter what you do with the money. Since you are over 59 1/2 you avoid the 10% Early Withdrawal Penalty. Or was it a ROTH IRA? Is you wife also over 59 1/2? IRA stands for Individual Retirement Account. So you don't have "our account". You have separate IRA accounts. And the withdrawals will add to your other income and may put you into a higher tax bracket.
