RMD for a 5% owner

[Nassau]

If their is a 5% owner who turns 70 ½ on Sept 29, 2011, who does not need to make a distribution until 4/1/2012. 

What if by 12/31/2011 the 5% owner will no longer be a 5% owner (shares are being sold).  Would they still need to make the distribution in 2012 (assuming no distribution was made in 2011).

For clarification, at what point does the sale need to take place during the year so that the participant is no longer considered a 5% owner?

Is it affected by the participant's spouse who is also a participant, 5% owner, and younger then the RMD age?

[ETA Consulting LLC]

They would still need to take it. The determination of 5% owner is made only once (and that is in the year the Participant turns age 70 1/2). There are no subsequent determinations.

Now, let's suppose during that year he wasn't a 5% owner. When he turns (let's say) age 73, his son buys the company. In this case, he would NOT have to begin receiving RMDs because he was not a 5% owner in the year he turned age 70 1/2.

Good Luck.