IRA accounts can only be taxed as ordinary income, so dividends, interest and capital gains on the account will not be taxable as such.
The rules for how this will be taxed and when withdrawals need to be made depend on a number of factors.
Assuming that you are a designated beneficiary (meaning you were not the spouse or minor child of the decedent, disabled or chronically ill), you will be subject to the 10 year rule. This means that you need to empty the entire account by the end of the 10th year following the original account owner's death - in your case by the end of 2034,
The taxation of the account will depend on if the account is a Roth or Traditional IRA. Withdrawals from a Traditional IRA are taxed as ordinary income, while withdrawals from a Roth IRA are not subject to income tax. When taking withdrawals from the account, the account custodian will withhold Federal tax, if you elect to do so.
If the account is a Traditional IRA, it is best to withdraw the amounts evenly over the course of the 10 years as this will help keep your income tax rate in a lower tax bracket over the course of those years.
Even though a Roth IRA withdrawal is not taxed, it would be more beneficial to not pull all of the funds out of the IRA at once as that will eliminate the growth potential that could be had by keeping some of the funds in the IRA.
Also, since these are inherited IRA accounts, the fact that you are not yet 59-1/2 years old will not result in a penalty for withdrawing the funds before that age.
This IRS page discusses Beneficiary IRAs - IRS Retirement Topics - Beneficiary
[Edited 1/14/2026, 2:44 PM PST] @TTufts
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