RMD - death

[mehmgo]

I have a 401k plan with the owner and spouse only in the plan. Both are over age 70.5 and both have separate account balances and have been taken out RMD's the past few years. In 2012 the spouse passed away. There were no distributions taken out prior to her death and both still have a balance in the plan. Who should the 2012 RMD for the spouse be payable too?

[jpod]

It should be paid to the deceased spouse's beneficiary. That is, it should be paid to the beneficiary designated by the deceased spouse, or the default beneficiary pursuant to the terms of the plan if there was no designated beneficiary at the time of the spouse's death. It is NOT payable to the deceased spouse's estate, unless the estate happens to be the designated or default beneficiary.