RMD Question

[Guest KD40]

I have an individual who is over age 70.5. The question I have is that she is an ascendant of a 5% owner. Although still an active employee, is she required to take a RMD for the year? The client has elected the new regs, so since she is active, she does have the option to defer, unless the fact that she is an ascendant to a 5% requires her to take the RMD.

[jaemmons]

Stock attribution applies to lineal descendant/ascendants (except in the case of stock being attributed to a grandparent from a grandchild, which I wouldn't believe applies here:) ) Therefore, she is considered a 5% owner, since this is the same determination of who is a key/hce ee, and would need to take her MRD.