Company X maintains a 401(k) plan. Participant C was born on 10/9/1940 and started receiving minimum distributions during 2010. On February 4, 2012, C dies. Under the RMD regulations, the lifetime RMDs end with the year of the participant's death even if the participant dies before payment for that year was made. This raises the following questions:
(1) To whom should the 2012 RMD be paid? and
(2) How should the 2012 RMD be tax reported?