Plan holds non-US property (not allowed)

[katieinny]

I was hoping to get some thoughts under "plan corrections," but nobody responded, so I'm giving it a shot here. We know the property has to come out of the plan. The HCE participant is over 70, so we're thinking that perhaps he can take a distribution of the property and pay tax on the market value. But, we'd like some thoughts on whether taking the distribution would be a prohibited transaction.