A rabbi trust is an irrevocable trust established for employees to finance nonqualified deferred compensation plans. The trust protects the employee’s assets and limits tax liability for disbursements made within a given tax year. Also known as a grantor’s trust, a rabbi trust is a type of trust that is established for employees and is […]

A rabbi trust is an irrevocable trust used to fund benefits for employees under a non-qualified deferred compensation plan. It prevents employers from using the funds for other purposes and protects the balance in case of changes to pension plans. It can also be used in situations where an employer buys another business to defer […]