401(k) plan sponsored by a business 100% owned by an ESOP - RMD question

[Tom]

A business is 100% owned by an ESOP. 

The question came up about RMD.  The employee involved was a >5% owner 10 years before the business sold to an ESOP and he was well below the RBD age.

I think we are ok with no RMD to this person.

Thanks in advance for comments.

Tom

[ESOP Guy]

Slow reply but no you do not have to do an RMD.  The shares in the ESOP do not count for ownership and if they sold before they turned 70.5/73.....  there is no RMD.