I retired at age 62 and my only income was $950 a month Social Security, so I have not even had to file taxes for the past two yrs. I now get $1,250 a month disability. I have no dependents and no other income. I have about $8k in an IRA which I put in tax free over the years. Can I take it all out now or should I spread it out over a few years? What tax rate will I have to pay on it?

I need to know the SOURCE of the disability payment.

If it is from Social Security, then it is NOT taxable.

If it is from your previous employer, then it IS taxable as a replacement for your salary.

If it is from a disability policy which YOU purchased, it is NOT taxable.

Do NOT take the $8,000 IRA distribution unless you really need it; instead, use it as a reserve fund.