RMD's and Illiquid Assets

[Gruegen]

Does anyone have any experience regarding required minimum distributions under 401(a)(9) where the participant's entire account balance in a qualified plan is held in an illiquid asset (such as a frozen Executive Life GIC)?

The participant has taken a distribution of the rest of their account and all that remains is a small amount (say $300) of the Executive Life GIC which is still pending payout.

Are there exceptions to 401(a)(9) if there are no liquid assets? Can the plan sponsor "contribute" the cash to the participant's account and use that to pay the RMD? If so, how does the company get made whole for the advances made to the participant?