Re: Estate Return 1041, do I need to include decedent's IRA when beneficiary is not the estate?

Does the Estate Return 1041 need to include this traditional IRA as gross income?

No, not at all. Since a beneficiary was designated on the IRA, it's passed outside of any will or estate.  The only time I"m aware of (there may be more) that an IRA is included in the estate, is if the estate is the named beneficiary on the IRA account.