Dear Rusty: I am a member of AMAC and learn so much from the Ask Rusty column. I hope you can give me some information about a question that has come up in my family. My husband is retired and has reached full retirement age. He is considering withdrawing money from an IRA to pay off our mortgage. We are wondering what, if any, penalties may be incurred on Social Security, Medicare, and income tax. Thank you for your help in this matter. Signed: Concerned Taxpayer Dear Concerned: Thank you for contacting the AMAC Foundation Social Security Advisory Service. Regarding your question on the impact of withdrawing IRA funds, there is no impact to your husband’s gross Social Security benefit. The amount withdrawn, of course, is considered ordinary income for federal income tax purposes, and will need to be included as such on your federal income tax return and will therefore affect your federal income tax liability when you file the return.