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Inheritance tax and income tax are different taxes. Inheritance tax is paid on fair market value of the asset you inherit. This include fair market value of a house, boat, car, checking account or retirement account. There's no inheritance tax on federal level, but there are still handful of states with inheritance and/or estate tax. Unfortunately PA is one of them and it should have been reported 10 years ago.
When you take the minimum required distribution, the distribution will be included in your taxable income and subject to income tax at federal and maybe on state level as well, depending if you still live in PA or not. Currently PA does not tax any retirement income.