If the funds you are inheriting are being distributed by the executor in accordance with the will and the source of the asset was not from a retirement account, annuity, or other type of asset that generates income in respect of a decedent then there would be no income taxes for you to pay. If the estate was large enough and there were any federal or KS estate taxes due, then these would have either been paid or held back by the executor of the estate from the assets in the estate before distribution to you. If your father died after June 30, 2008 then there would be no KS inheritance tax applicable because it no longer applies.
http://www.ksrevenue.org/taxnotices/notice08-01.pdf
Did you receive the funds directly from the pension plan or from the executor of the estate?
Also, I made an error typing the KS inheritance date cutoff. It should have been June 30, 1998. June 30, 2008 was the last date to submit an inheritance tax return if the decedent passed away prior to July 1, 1998.
Then you would be responsible for income taxes on the taxable portion of the pension distribution. If your father had made any after-tax contributions then the portion of the pension representing recovery of after-tax contributions would be tax-free.
If you received the distribution this year, then the plan should send you a 1099-R by January 31, 2010 with a breakdown of the taxable and tax-free (if any) amounts. The taxable amount will have to be reported as taxable income on your tax 2009 return.
Enrolled Agent
EA, QPA, CHFC, CEBS, CLU - 29 years experience providing financial advice