A method of deferring compensation for executives is the use of a rabbi trust. The instrument was named - rabbit trust - because it was first used to provide deferred compensation for a rabbi. Generally, the Internal Revenue Service (IRS) requires that the funds in a rabbi trust must be subject to the claims of the employer's creditors.
This information is current as of December, 2007, but is subject to change if tax laws or IRS regulations change. Current tax laws should be consulted at the time of the preparation of such a trust.
Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specialized financial arrangement designed to provide additional retirement benefits to a select group of high-level executives or employees. This particular trust is established in the state of Ohio and falls under the jurisdiction of Franklin County. A Rabbi Trust, also known as a "Secular Trust," is a nonqualified deferred compensation arrangement that helps protect executives and employees from the risk of their deferred compensation being subject to the claims of the company's creditors. By establishing a Rabbi Trust, employers can set aside funds specifically for the purpose of providing future compensation to key employees. The Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees serves as a vehicle for managing and administering these deferred compensation funds while adhering to applicable tax regulations and guidelines. It aims to ensure that the specified executive employees receive their deserved compensation in a controlled and protected manner. There are a few variations of the Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, which cater to different needs or circumstances: 1. Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — Rabbi Trust for Retirement Income: This variant of the trust focuses on providing retirement income to executive employees. It allows for periodic distributions commensurate with the predetermined retirement plan. 2. Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — Rabbi Trust for Post-Employment Benefits: This type of trust aims to provide post-employment benefits to executive employees, such as healthcare or other post-retirement perks. It ensures the smooth transition and well-being of executives after their employment ends. 3. Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — Rabbi Trust for Performance Incentives: This specific trust is established to reward executive employees for exceptional performance and contributions towards the company's growth. It links compensation to the achievement of specific performance targets and metrics. In conclusion, the Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specialized financial arrangement serving high-level executives in the state of Ohio. Its variations cater to different needs, such as retirement income, post-employment benefits, and performance incentives. By utilizing a Rabbi Trust structure, employers can protect deferred compensation from potential creditor claims, ensuring the secure provision of additional compensation to deserving executives.Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specialized financial arrangement designed to provide additional retirement benefits to a select group of high-level executives or employees. This particular trust is established in the state of Ohio and falls under the jurisdiction of Franklin County. A Rabbi Trust, also known as a "Secular Trust," is a nonqualified deferred compensation arrangement that helps protect executives and employees from the risk of their deferred compensation being subject to the claims of the company's creditors. By establishing a Rabbi Trust, employers can set aside funds specifically for the purpose of providing future compensation to key employees. The Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees serves as a vehicle for managing and administering these deferred compensation funds while adhering to applicable tax regulations and guidelines. It aims to ensure that the specified executive employees receive their deserved compensation in a controlled and protected manner. There are a few variations of the Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, which cater to different needs or circumstances: 1. Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — Rabbi Trust for Retirement Income: This variant of the trust focuses on providing retirement income to executive employees. It allows for periodic distributions commensurate with the predetermined retirement plan. 2. Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — Rabbi Trust for Post-Employment Benefits: This type of trust aims to provide post-employment benefits to executive employees, such as healthcare or other post-retirement perks. It ensures the smooth transition and well-being of executives after their employment ends. 3. Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — Rabbi Trust for Performance Incentives: This specific trust is established to reward executive employees for exceptional performance and contributions towards the company's growth. It links compensation to the achievement of specific performance targets and metrics. In conclusion, the Franklin Ohio Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specialized financial arrangement serving high-level executives in the state of Ohio. Its variations cater to different needs, such as retirement income, post-employment benefits, and performance incentives. By utilizing a Rabbi Trust structure, employers can protect deferred compensation from potential creditor claims, ensuring the secure provision of additional compensation to deserving executives.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
