Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

What taxes are assessed on distributions of an inherited IRA?
For an inherited IRA, there are a few options for taking distributions. You clearly haven't done option 1. It sounds like you haven't done option 2 because otherwise you would probably know how it is taxed. That leaves you with option 3.  With option 3, you must distribute the entire amount within 5 years.  For you, I'm not sure if that means you need to distribute the entire amount by the end of 2016 or 2017.  If it was 2016, then you'll probably have to pay penalties. Distributions from an inherited IRA are taxed as ordinary income regardless of your age or the distribution option you select.