Employee after RBD Ceases to be a 5% Owner

[Guest Edward McElroy]

A partner of a law firm was a 5% owner on his RBD. However, as he has continued to work into his mid 70s, his ownership interest in the law firm has dropped below 5%. Is he able to stop receiving MRDs until the time that he terminates employment with the law firm? My guess is he can't, but I would appreciate your thoughts. Thanks. Ed

[mbozek]

I think there is a provision in the 401(a)(9) regs that fixes who is a 5% owner as of age 65 or 66.