Depending on the interest rate on your credit card and how long you expect to pay it down it might be prudent to liquidate the IRA to pay the credit card. You can figure it out with a bit of math.
First, let's consider the 35% income tax. You will eventually have to pay tax on every penny in the IRA, it's just a question of when and what tax rate you'll have at that point. Do you expect to be in a larger or lower marginal tax bracket when you retire? You'll effectively only pay (or gain) the difference between 35% and your eventual tax rate. Many people retire in lower tax brackets than when they were earning, but some stay at the same bracket or higher, depending on how aggressively they saved. Also, there's some chance that in the future tax rates will be higher or lower, so it's hard to make definite assumptions about eventual tax rates when you retire. Probably somewhere in the 20% to 40% range.
Also worth noting: whether you pay 35% now and let the money accumulate interest for 30 years or let the money accumulate interest and then pay 35%, you'll end up with the same amount. The advantage of a tax deferred account is that you pay the tax once, not that you get to defer the tax. In a normal brokerage account, the marginal tax rate basically changes the rate of interest your investments make, whereas in a tax deferred account your interest rate is untouched (with the tradeoff of smaller initial capital to invest with). It's a fallacy to think that because you pay taxes later instead of now it means you'll be making more money.
Similarly, the 10% penalty for early withdrawal is not trivial, but it is a one-off expense, not an interest rate, and so is effectively a 10% increase on the 35% marginal rate.
In order for it to make sense to pay off the credit card, the credit card debt would need to accumulate faster than your IRA, once you take in to account the difference between the tax rate you have now (effectively 45%) and what it might be when you retire (probably somewhere between 20% and 40%).
Let's say you have a 45% tax rate now (the 35% + 10% penalty), and you expect to have a 30% tax rate when you retire. Let's say your IRA has 5% annual returns, and your credit card is 25% APR. If you leave the money in the IRA, you'll have 70% of your capital earning 5% annually. If you take it out, you'll have 55% of your capital "earning" 25% APR (not paying an interest rate on a loan is the same as earning interest on an investment). How long does your credit card debt need to accumulate interest before it would have made sense to pay it down with your IRA?
70 * 1.05^N = 55 * 1.25^N, N is the number of years until you'd cash out your IRA or hold the balance in your credit card. For this example, N is 1.4 years, so if you had to hold the credit card balance for more than 1.4 years you should cash out the IRA to pay the credit card down instead. This is not an all or nothing proposition, either. Let's say you calculate you can pay down 80% of your credit card in 1.4 years. Then withdraw up to 20% of your credit card debt from your IRA now and pay the rest of your credit card off over the next year and a half.
Feel free to play with different numbers. There's a lot of assumptions you have to make about the numbers, so it makes sense to plug in different values and get a sense of how sensitive the final number is. The point is if you have to hold high interest debt for too long it can make sense to pay it down with IRA money, and you should at least know when that crossover point is.
Note that there can be other factors to consider that are not strictly math based, like how hard it is for you to save money, how hard it is for you to not accumulate credit card debt, and how often you hit the federal maximum for IRA contributions. Also, if you have a 401k at work, similar math can mean it makes sense to take a loan against it to pay down credit card debt. Some 401k plans allow such loans, and the loans mean you don't have to pay the 10% penalty. But you do have to pay it back in to the 401k or face financial penalties.
Point is, retirement account resources are money and there are situations where it makes sense to pull from it. Just do it in a disciplined way.