Andy the Actuary Posted February 9, 2014 Posted February 9, 2014 If the market value of the property in an escrow account falls below one hundred ten percent (110%) of the remaining restricted amount, the Employee must deposit additional property to bring the value of the property held by the depository up to one hundred twenty-five percent (125%) of the restricted amount. Let's say the HCE does not have the wherewithal to fulfill the additional property obligation, what happens? So, if the remaining balance is returned to the Plan, must the participant select a new distribution option? Suppose the escrow value has severely depreciated? Has anyone seen an HCE select the escrow arrangement and then default? The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
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