No, it's not an inheritance, this is deferred income.
However, code 7 indicates a distribution from an owned account, not a distribution to a beneficiary of an inherited retirement account. Is your name on the Form 1099-R as the payee?
Is the IRA/SEP/SIMPLE box marked? If so, it means that you previously moved the money to your own traditional IRA and the account is now your IRA account, no longer an inherited account.
