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Rabbi Trust

   Also found in: Wikipedia 0.01 sec.
Rabbi Trust
A trust in which one may deposit employee compensation such that taxation is deferred to a future date. This is done most commonly when the compensation would be deposited otherwise into a retirement plan that is not tax deductible. It derives its name from the fact that the first one was intended to benefit a rabbi.


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A rabbi trust is a security device for a deferred compensation plan for which an employer sets aside and contributes amounts to an irrevocable trust on behalf of one or more employees.
Rabbi trusts were initially popular because their funding was subject to the employers' creditors and therefore the compensation was considered deferred.
00 Hardcover KF3509 The entries in this guide answer 500-plus questions about the different types of nonqualified deferred compensation plans available to executives, and the rules governing rabbi trusts, life insurance, stock plans, Section 457 plans, withholding taxes, funding, and mutual fund options.
 
 
 
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