Raul died in 2023 with a gross estate of $18 million. His $3 million IRA was included in his gross estate and was passed to his godson, Xander. Raul's estate tax liability was $2,032,000. Consider that if the IRA had not been included in Raul's estate, his estate tax liability would have been $832,000. Assume that Xander receives a distribution of $1 million from the IRA this year. Which statements correctly describe Xander's income tax situation?