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.
Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a type of financial vehicle established by employers in Miami-Dade County, Florida to provide nonqualified deferred compensation for their top-level executive employees. This trust is designed to defer a portion of an executive's salary or bonus, providing them with additional retirement income and potential tax advantages. The Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is governed by a written agreement between the employer and the executive employee. The trust assets are set aside and held separate from the company's general assets, reducing the risk of forfeiture by the executive in the event of corporate bankruptcy. The purpose of creating a Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is to attract and retain top talent in the organization. By deferring a portion of their compensation, executives can potentially maximize their retirement savings while also receiving potential tax benefits. This type of trust is often named "Rabbi Trust" as it takes its name from a landmark legal case involving Rabbinical Council of America Services Company and Commissioner of Internal Revenue. The name "Rabbi Trust" has since become a commonly used term for this type of nonqualified deferred compensation trust. There are various types of Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, each tailored to the specific needs and objectives of the employer and its executives. Some common variations include: 1. Supplemental Executive Retirement Plan (SERP) Trust: This type of trust is established to provide additional retirement income for executives beyond what is provided by traditional employer-sponsored retirement plans. 2. Top-Hat Plan Trust: This trust is designed specifically for highly compensated executives who are not covered by typical qualified retirement plans due to legal restrictions. It allows these executives to defer income and potentially receive favorable tax treatment. 3. Bonus Deferral Trust: This trust is created to hold and invest a portion of an executive's bonus income until a specified future date. It enables executives to align their compensation with long-term goals and potentially defer taxes on the bonus until distribution. 4. Stock Option and Stock Appreciation Rights (SARS) Trust: This trust is established to hold employer-issued stock options or SARS for executives, allowing them to defer the taxation of stock gains until exercise or sale. In summary, the Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a flexible financial tool that enables employers to provide nonqualified deferred compensation to their top executives. By utilizing this trust, executives can potentially enhance their retirement savings and receive certain tax advantages. Different variations of this trust can be tailored to meet the specific needs and objectives of both employers and executives.Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a type of financial vehicle established by employers in Miami-Dade County, Florida to provide nonqualified deferred compensation for their top-level executive employees. This trust is designed to defer a portion of an executive's salary or bonus, providing them with additional retirement income and potential tax advantages. The Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is governed by a written agreement between the employer and the executive employee. The trust assets are set aside and held separate from the company's general assets, reducing the risk of forfeiture by the executive in the event of corporate bankruptcy. The purpose of creating a Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is to attract and retain top talent in the organization. By deferring a portion of their compensation, executives can potentially maximize their retirement savings while also receiving potential tax benefits. This type of trust is often named "Rabbi Trust" as it takes its name from a landmark legal case involving Rabbinical Council of America Services Company and Commissioner of Internal Revenue. The name "Rabbi Trust" has since become a commonly used term for this type of nonqualified deferred compensation trust. There are various types of Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, each tailored to the specific needs and objectives of the employer and its executives. Some common variations include: 1. Supplemental Executive Retirement Plan (SERP) Trust: This type of trust is established to provide additional retirement income for executives beyond what is provided by traditional employer-sponsored retirement plans. 2. Top-Hat Plan Trust: This trust is designed specifically for highly compensated executives who are not covered by typical qualified retirement plans due to legal restrictions. It allows these executives to defer income and potentially receive favorable tax treatment. 3. Bonus Deferral Trust: This trust is created to hold and invest a portion of an executive's bonus income until a specified future date. It enables executives to align their compensation with long-term goals and potentially defer taxes on the bonus until distribution. 4. Stock Option and Stock Appreciation Rights (SARS) Trust: This trust is established to hold employer-issued stock options or SARS for executives, allowing them to defer the taxation of stock gains until exercise or sale. In summary, the Miami-Dade Florida Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a flexible financial tool that enables employers to provide nonqualified deferred compensation to their top executives. By utilizing this trust, executives can potentially enhance their retirement savings and receive certain tax advantages. Different variations of this trust can be tailored to meet the specific needs and objectives of both employers and 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.
