A 74-year-old 5% owner began taking required minimum distributions (RMDs) from his company’s 401(k) plan when he attained age 70½. He is still working for the same company and has recently sold all his ownership interest in the company. Must he continue taking RMDs?
Rev. 03/11/09; E-mail Alert 2009-4

Yes. The 5% owner test is done at an individual’s required beginning date (RBD). RMDs must continue regardless of whether the individual later sells his/her ownership interest.