Does this mean she has a retirement plan or some type of an IRA account?
It means that she might and that the drafter did not want to use nontaxable $$ to pay tax-deductible expenses, because if you did, you'd waste the tax deduction.
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IRC 2207A has to do with federal estate taxes, and what assets can be used to pay those taxes. If there is no estate tax liability, then you can ignore this provision of the will.
The other language in the will does not necessarily mean that there is an IRA or retirement account at the time the testator passed away. The language could simply be "boilerplate" that was included, or the account could have been cashed out before the person making the will passed away. There are other possibilities.
The executor of the estate should be reviewing the decedent's papers to see what kinds of statements the decedent was receiving, and otherwise trying to track down assets. The lack of statements would tend to indicate that no retirement account exists, though even that is not 100% certain.
I would consult with a good probate attorney to help you understand the will. If you are also the executor, this attorney can help you with what you need to do to handle the estate.