Is RMD due?

A defined contribution plan has an age 72+ Active Participant who is not a 5% owner, who would like to receive an in-service distribution which the plan permits.

Required Minimum Distributions are generally required for non-5% owners in this plan upon the later of the year that he or she reaches 72 (70 ½ if you reach 70 ½ before January 1, 2020), or, the year in which he or she retires.

Q: The question is whether or not a Required Minimum Distribution is necessary since the Active Participant is beyond Age 70.5/72 but has not retired and does not intend to retire this year?

The RMD is not required.  The active participant didn't reach any point where a RMD is required.  If the plan didn't have in-service distribution, the active participant cannot take *any* distribution until he terminates employment.

And remember, if it's not REQUIRED, the distribution may be rollover-eligible and subject to mandatory 20% withholding rather than a waivable 10%.

Thank you so much 

Be careful, especially if they are asking for a rollover. I know you said they do not intend to retire this year, but if it turns out that they do terminate before the end of the year, then 2022 becomes their first distribution calendar year and now some of that money that was rolled over suddenly becomes an RMD that was not eligible for rollover. You might want to encourage them to take at least part of their distribution in cash.

Even if they remain employed, rolling to an IRA would then create an RMD (or increase RMD) from IRA(s) next year - so this only makes sense if taking the cash (less 20% w/h).