Can an ESOP purchase its employer stock from someone other than the employer?

[katieinny]

At some point, a key employee may want to sell his one or two shares of employer stock (owned outside the plan) to the company's ESOP. I can't think of any reason why the ESOP couldn't purchase the shares from him at normal fair market value, but thought I would toss this out there in case I'm missing something.

[GMK]

The ESOP can buy the shares.

And if it's a section 1042 transaction (see link below), the employee may be able to save some on taxes.

http://www.nceo.org/articles/esop-tax-ince...ribution-limits

[katieinny]

Excellent! Thanks for your help, GMK.