Welcome! Thank you for your question.
You will have to pay income tax based on the entire amount of the IRA and your SSD being considered income in 2013. This means that your gross income for 2013 will be about $88,000. The federal tax rate for that amount of income will be about 28%. There will be some state income tax of 4-5%.
There is not a 10% penalty for withdrawal of an inherited IRA. You are correct that there is not a penalty.
For most IRA accounts you could return some or all of the funds within 60 days and not have to pay the tax. However, with this type of IRA there is no 60 day grace period. Once you withdrew the money you were stuck with the income for the year of withdrawal.
I cannot provide you with legal advise. I have provided you with information about the law related to your question. My answer, and any information that you find online, should not take the place of having a consultation with a lawyer in your area to advise you regarding your specific issues.
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