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When someone inherits a 401k, the tax implications can vary based on several factors. Here's a general breakdown:

1. **Spouse Beneficiary**: If a spouse inherits the 401k, they can roll it over into their own retirement account. This allows the funds to continue growing tax-deferred until they take distributions. The distributions will be taxed as ordinary income.

2. **Non-Spouse Beneficiary**: If a non-spouse (like a child or friend) inherits the 401k, they typically have to take required minimum distributions (RMDs) over their life expectancy or empty the account within 10 years, depending on the specifics of the plan and the age of the original account holder. These distributions are taxed as ordinary income.

To minimize the tax bill, here are a few strategies:

1. **Take Distributions Slowly**: If possible, take distributions over the longest period allowed to spread out the tax liability.

2. **Consider Your Tax Bracket**: If the beneficiary is in a lower tax bracket in a certain year, it might make sense to take a larger distribution that year.

3. **Charitable Contributions**: If the beneficiary is charitably inclined, they might consider donating some of the 401k assets to charity. This could potentially offset some of the tax liability.

Remember, tax laws can be complex and change frequently, so it's always a good idea to consult with a tax professional to understand the best strategy for your specific situation.