Will my spouse have to pay taxes for closing out a traditional IRA. Spouse is 69 years old.

[BC45]

Spouse will be taking out all IRA funds.

[Opus 17]

All withdrawals from a traditional (pre-tax) IRA are taxed as ordinary income.  

[Cynthiad66]

Yes.  All withdrawals from traditional IRA's are taxable.  However, there are no penalties for ages over 59.5.

Please use this link for additional information.

IRS FAQ - IRA Withdrawals

[BC45]

Thanks for your reply. I was also trying to determine what portion of the distribution is taxable. (ie., only interest earned, tax deductions taken for making deposits, etc.).

Would appreciate any further info. Thank you. 

[Opus 17 · Accepted solution]

@BC45 

ALL amounts withdrawn are taxable.  The entire point of a traditional IRA is that you don’t pay tax on the contributions and you don’t pay tax on the earnings or gains over the years, so you pay tax on everything you withdraw in retirement.