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Non-5%-owner is well past 70-1/2.  Wishes to take an in-service distribution from employer's DC plan and roll to an IRA.  (Please don't ask why.)  Must some portion of that distribution be withheld as an RMD or can it all go to the IRA?  

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Presuming the employee is still active.... I don't see where the employee has met the Required Beginning Date to have to have an RMD so I would say no to RMD and all can go to IRA.  Of course, you have looked at the plan document first. :)

Just on a practical note, if this was the whole account balance and employee then terminated later in the year, the employee may then have some dollars that should have been RMD.  Maybe try talking the employee into taking some cash around the theoretical RMD amount to be cautious.

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