Generally taking the money out over 10yrs is the most efficient tax wise as it’s less likely to push you into higher brackets. You could play around with some tax software to see how much you can push it without going into another bracket.

Remember, our tax system is a progressive one, you only pay the higher percentage of a bracket on the amount that goes into that bracket, not your entire taxable income (hugely misunderstood fundamental of our tax system in the US)

If you are under the income limits for deductible IRA contributions, you can offset some of that income by contributing. Be careful not to go over the income limits if that is your plan.

Also, a couple years ago when mortgage rates were 2-2.5% I’d say get a mortgage but with current rates you should compare the cost of interest on say a 15yr loan to the taxes paid

Either way you need to get the IRA money out in 10yrs, so do some calcs to figure out the most tax efficient way. Sorry there isn’t a one-size-fits-all solution, we all have different tax situations.