Any money you withdraw from an IRA, for any reason, is taxable to you. What you do with the money after you pay the tax has no effect on the tax you will owe.
**By withdraw, I mean you get the money in your bank account to spend. There are some different rules if you send money directly to a charity, or if you rollover money from one IRA into another IRA. But if you withdraw the money to spend, give away, or invest elsewhere, you pay the tax first.
