Should I buy out mortgage?

[Bill Jackson]

Hi     I was recently laid off from a well paying job. I do have some money set a side. so for the current time i am ok. Sometimes life smacks you in the face and you all of a sudden see everything. I originally was paying 2 times the principal on the loan for my townhouse. I bought the townhouse 6 years ago so that would be about 2014. I am 64 and will be 65 in June of 2021. I do have the option to start receiving my social security next year. I put a down payment of $90k on the townhouse. I have  the remainder of the mortgage which is $200k. I did roll back the monthly mortgage payment to the original value of $1.5k till i reorganize. If my job continued i was going to take my social security early at 65 to pay the monthly mortgage. I do have enough that i can easily buy out my Mortgage which would save me over $100k. I like to work and am seeking employment again. here are my questions::

1. as far as the state and federal tax, if i took a lump sum or $200k out of my IRA i assume that will be seen as income. would i be taxed at the rate i was when employed or would i be taxed at a higher rate?

2. would it be better to go on paying the monthly mortgage or maybe paying a round $9-10k each month for 20 months or so?

I am thinking it is always better to payoff dept......when you can