A participant dies before receiving his minimum distribution from a defined contribution plan in 2005. Spouse, who is 68 years old, is sole beneficiary. I know the RMD is not subject to rollover, but to whom does it get paid, beneficiary (spouse) or the estate?

What does plan document provide? IRS doesnt care who receives the RMD. As a practical matter beneficary suceeds to all rights of decedent and should apply for rollover and RMD payment.

I think it goes to the beneficiary. One issue (RMD) is a tax issue, making sure that the money gets out of the plan. The other (beneficiary) is an operational issue. That is, you have some money that must leave the plan. To whom does it get paid? The beneficiary, just like any other money leaving the plan in the event of death/

Thank you for replying. I found the answer in Treasury Reg Section 1.104(a)(9)-5, Q&A-4(a), which reads as follows ..."Thus, a minumum required distribution, determined as if the employee had lived throughout that year, is required for the year of the employee's death and that amount must be distributed to a beneficiary to the extent it has not already been distributed to the employee."

The Pension Answer Book quotes that reg in Q11:22 (page 11-24) and adds:

..."The RMD for the year of he employee's death will be paid to the employee's estate only if the estate has been designated as the beneficiary or if the estate is the default beneficiary."

Thanks to everyone who was able to reply.