It certainly is an inherited IRA. If you elect to keep it intact, you can either keep it as a separate inherited IRA that remains in your spouses name or elect to to treat it as your own IRA and have it moved to your own account in your name.
If you just elect to take a total distribution and close the IRA then that would not matter.
In any event, any distribution is taxable income (assuming that this is a Traditional IRA and not a Roth IRA) unless there was any non-deductible basis in the IRA tracked on a 8606 form.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
