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What happens with the MRD rules where a 5% owner ceases to be a 5% own


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An employee is a participant in a DB plan (5% owner). The participant accepted a job with a new employer (not a 5% owner) where he will participate in a DC plan. The DB plan will be terminated. Participant turns 70 1/2 sometime this year. Can we avoid the required minimum distribution under 1.401(a)-9 by a rollover from the DB plan to the DC plan? I think the answer is no but as a result of a termination of the employer maintaining the DB plan, the employee will only be a 5% owner for a month or two of this year. Is there any rulings or regulations on a subsequent change of status from a 5% owner to a non 5% owner that might permit avoidance of the MRD rules?

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