Yes, you can just go and withdrawal all of the funds today and prepare the form next year with your taxes.
Yes, you will use code 04, of form 5329, for the penalty exception.
In TurboTax (TT), you will enter the 1099-R your receive, in January 2018. The TT interview will identify the inherited IRA and generate the form 5329, if needed.
You will not pay a 10% early withdrawal penalty. The distribution will be taxable. There is no exception to the tax.
