I don't understand your response.   I might not have explained fact pattern properly.  

John Doe owned a 403b account at Fidelity.   John Doe died.  John Doe did not name any beneficiaries to receive his 403b account at Fidelity.    

The entire 403b account, after John Doe died, valued at about 500k, was distributed to the estate of John Doe.   It was not distributed to an individual.    The 500k was distributed to Estate of John Doe. 

Fidelity has issued a 1099R form to the Estate of John Doe reporting the 500k of distributions.    Those distributions paid ot the estate are in turn, being distributed to a variet of beneficiaries pursuant to the terms of John Doe's will. 

are you saying the distributions from the estate to these beneficiaries are not considerd taxable income?  If so, please explain why you think that?