Participant terminated employment in 2002. Attained age 70 1/2 in 2004. Required beginning date was 4-1-05 so needed to receive a distribution as of 4-1-05 and 12-31-05. Participant did NOT receive either distribution. The participant died in 2006. The participant's non-spouse beneficiary is going to elect distribution over lifetime. What about the excise tax? Who pays? Participant's estate?

1. Don't forget about 2006 MRD measured by deceased participant's deemed life expectancy. That must be distributed to beneficiary by the end of 2006.

2. RMDs based on beneficiary's life expectancy don't begin until 2007.

3. The estate is liable for the excise tax. I would make the 2004 and 2005 distributions to the estate asap and try to get the excise tax waived via a statement of reasonable cause.