Property outside the U.S. is in a PS plan

[katieinny]

We already know that non-U.S. property should not be in the profit sharing plan and we know it needs to come out. Of course, the plan could sell the property to someone who is not a party-in-interest at market value, which would avoid the prohibited transaction penalty. However, if there isn't a buyer, we're thinking that another option might be to distribute the property to the participant (he is over age 70 1/2) and have him pay income tax on the full value as another option to avoid a P.T. Has anybody run into this before?