Former key - Required Beginning Date

[Chippy]

A shareholder is creasing to be a 5% as of 12/31/2017 and will continue to work at the company.    He turns 70 1/2 in 2018.   

Since he is not a 5% owner in 2018, is it correct that he does NOT have to start taking RMD's from the plan until he retires?  

[ETA Consulting LLC]

1 hour ago, Chippy said:

A shareholder is creasing to be a 5% as of 12/31/2017 and will continue to work at the company.    He turns 70 1/2 in 2018.   

Define 'creasing' .

[ETA Consulting LLC]

Ceasing???  I was thinking increasing or decreasing.  

Since he is not a 5% owner in the plan year ending in the calendar year he turns age 70-1/2, then he would not have to begin is RMDs.  Now, this assumes it is a calendar year plan.  Keep in mind, the 5% owner measurement is during 'the plan year ending within the calendar year'.  So, if it's a January 31st PYE (for argument sake), he'd have to begin is RMDs.

Good Luck!

[Chippy]

Thank you.