Marshall Vass

But an owner outside the plan can’t be a participant.

Why is the 5% rule stated in every ESOP plan if there is no way for a participant to ever become a 5% owner?

The plan states "must generally begin distributing benefits to an ESOP PARTICIPANT who is a 5% owner". You can't be a participant if you own stock outside of the ESOP, so how can there ever be a 5% owner for the purpose of this rule?

As a participant in an ESOP, I have over 12% ownership in company stock in my account. I am 72 years old. Am I considered an owner for the purpose of RMD under the 5% RMD?