Raul had a gross estate of $15 million. Raul died in 2018. His $3 million IRA was included in his gross estate and was passed to his godson, Xander. Assume that Xander receives a distribution of $1 million from the IRA in 2019. Which statements correctly describe Xanders income tax situation?

1. Xander would not report taxable income from the distribution because the IRA is a qualified retirement benefit.
2. The IRA distribution would be treated as income on Xanders income tax return for 2019.
3. Xander would not report taxable income from the distribution because the IRA was stepped up in basis in Rauls estate.
4. Any estate tax paid that is attributed to the IRD item is not allowable as an income tax deduction to Xander.