Even if you're under age 59 ½, the usual age at which penalty-free withdrawals are allowed, you can take money out of an inherited account without an early-withdrawal penalty. You will, however, have to pay income tax on the amount that you withdraw.
After you withdraw the money you can gift up to $16,000 to each individual without having to file form 709.
No inheritance tax liability for you. Any inheritance tax would be paid by the state.
Understand that withdrawing that amount of money might put you in a higher tax bracket that could be avoided by periodic annual withdrawals.
