### Question
Can you define what frozen deposit means?


### Answer
**Frozen deposit** is defined as the following in *26 U.S.C. § 402*:

> any deposit which may not be withdrawn because of—


(i) the bankruptcy or insolvency of any financial institution, or


(ii) any requirement imposed by the State in which such institution is located by reason of the bankruptcy or insolvency (or threat thereof) of 1 or more financial institutions in such State

#### Citation:
  - *26 U.S.C. § 402*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

