If a person holds an ownership interest of greater than 5% in ABC Company, but the person is not an employee of ABC Company, and he or she does not receive a salary /guaranteed payments from ABC Company, Is this person required to take an RMD from the ABC Company if he or she meets the RMD requirements?
I thought for purposes of section 401(a)(9), a 5-percent owner is an employee of the company and in this situation since the person is not an employee of the ABC Company and did not receive a salary/guaranteed payments from ABC Company he or she would not be required to take an RMD from the ABC Company.