I recently inherited a non-spousal IRA. The 10-year rule applies, I understand that.
The cost basis on the broker statement for the mutual funds is from 20 years ago when they were purchased. If this were not an IRA, this would be a problem, I wouldn't want to pay capital gain taxes on the funds before they were mine.
But, for an IRA, does it matter? I will only be taxed when I withdraw funds, and it will be taxed as income, not capital gains.
I would prefer that the cost basis be reset to when the funds became mine so I can more easily see how they are performing. But if there are no tax implications, I can live with it.