Esot distribution withholding question

[Guest ElizabethH]

After a total distribution from an ESOT to a participant of employer stock, followed by a put back to the company by the participant, and payment from the company for the stock over 5 years, is withholding due on the payment by the company? Is the payment after the put considered a distribution from the plan?

[RLL]

The payment by the company is not a distribution from the ESOP; it is an installment payment for the purchase of the stock. As such, it is not subject to withholding.