Inheritance 401k

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There seems to be at least a 10 year time limit.

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That is your only method of limiting tax liability. The money has never been taxed. It can't just roll forever in perpetuity from generation to generation w/out ever paying taxes. This can can't go any further.

He pays standard income tax on it.

Eligible Designated Beneficiaries:
If you are an eligible designated beneficiary (such as a spouse, minor child, or someone not more than 10 years younger than the deceased), you can stretch withdrawals over your lifetime.

Only a spouse can treat it as their own.

As far as tax mitigation, your buddy can consider maxing 401k and traditional IRA if he’s not already, and using the inherited IRA to supplement his income.

Otherwise, taking distributions up to the top of his marginal bracket can be wise unless he’s retiring within the 10 years.

Should be able to move it to an inherited IRA. Take the 10 years to gradually draw it down getting.max tax differed growth along the way but minimizing going into higher tax brackets as much as possible. If they have a low income year (take a sabbatical lose job etc) then would be good time to draw more while in lower tax bracket. Also, if the original owner was already subject to RMDs then heir has to keep taking them.

Also, there are exceptions, including those for minor children, individuals with disabilities or chronic illnesses, and those not more than 10 years younger than the original owner, who may still use the older "stretch IRA" rules based on life expectancy.