I've heard that the proposed regs. stating that 5% ownership status never went away, even after divesting oneself of any ownership interest -- were repealed. Therefore, you would only be considered a 5% owner for the next 5 years. Can anyone varify that?

It would appear your question has to do with Key employees and Top Heavy. The rule that if a Key employee becomes a non-Key employee and their balance is removed from all testing still stands. Therefore, if a 5% Owner last year is no longer a 5% owner, they become a former key and you do not include their benefit in either the numerator or denominator of the fraction.

The 5 year look back rule is reduced to 1 year except for any in service distributions.

My question does relate to in-service distributions, specifically relating to RMDs after age 70 1/2.

An employee is treated as a five percent owner if the employee is a five percent owner with respect to the plan year ending within the calendar year in which the employee attains age 70 1/2. Once an employee is a 5% owner, distributions must continue to the employee even if the employee ceases to be a 5% owner in a subsequent year.