Retirement tax questions

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I think that the 20% withholding would only apply if he were under age 59 1/2. ERSGA seems to have given us the whole amount because we rolled over the part that was interest earnings. To clarify, they sent the bulk of it directly to us, but rolled over the smaller part that was interest which, if I understand it, is the only taxable part. I think that if we leave that portion that was interest in the traditional IRA for five years or something, we don't have to pay income tax on it.  But my most urgent question is whether we'll incur more taxes if we spend part of the money that ERSGA sent directly to us. It sounds like because he is over 59 1/2, we don't incur any extra taxes.