Starting and stopping RMDs

[Guest Peter Riggins]

Can a more than 5% owner in a 401(k)/Profit Sharing Plan who is still actively at work and has begun taking the required minimum distributions (RMDs), sell his ownership interest, continue to be actively at work as a non-owner and stop taking RMDs if the plan allows?

[mbozek]

See Reg. 1.401(a)(9)-1 B-2(d)- 5% ownership is determined in the year in which the 5% owner attains age 66 1/2 and is not affected if the interest falls below 5% in a later year.

[BPickerCPA]

66½ or 70½? I'm reading 70½ in reg. 1.401(a)(9)-2, A-2©.