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.
San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees is a type of trust that is created to provide executive employees with nonqualified deferred compensation. This type of trust is commonly known as a Rabbi Trust. A Rabbi Trust is a specific type of nonqualified deferred compensation arrangement that allows employers to set aside funds that will be payable to executive employees at a later date. The funds are generally set aside in a trust for the benefit of the employees, ensuring that they will be available even if the employer does not fulfill their obligation to pay. In the case of the San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, this trust is specifically established for executive employees in San Diego, California. It functions as a means to offer additional compensation and benefits to key executives, allowing them to defer a portion of their income until a specific future date, typically retirement. This type of trust can offer various advantages for both employers and employees. For employers, it allows them to attract and retain top executive talent by offering an additional retirement benefit. It can also provide tax advantages for the employer since the funds are typically deductible when they are paid out to the employee. For executive employees, the trust offers a means of deferring compensation and potentially reducing taxable income in the current year. It also provides a source of retirement income outside traditional retirement savings plans such as 401(k) or pension plans. It's important to note that there may be various types or variations of the San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust. The specific details and provisions may vary depending on the employer's preferences and the needs of the executive employees. Examples of potential variations could include different vesting schedules, investment options, or payout options. In summary, the San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specialized trust designed to offer executive employees a deferred compensation option. This trust allows employers to set aside funds in a separate account, ensuring that they are available to the employees at a later date. It provides benefits for both employers and executive employees, including attracting top talent, potential tax advantages, and additional retirement income options.San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees is a type of trust that is created to provide executive employees with nonqualified deferred compensation. This type of trust is commonly known as a Rabbi Trust. A Rabbi Trust is a specific type of nonqualified deferred compensation arrangement that allows employers to set aside funds that will be payable to executive employees at a later date. The funds are generally set aside in a trust for the benefit of the employees, ensuring that they will be available even if the employer does not fulfill their obligation to pay. In the case of the San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, this trust is specifically established for executive employees in San Diego, California. It functions as a means to offer additional compensation and benefits to key executives, allowing them to defer a portion of their income until a specific future date, typically retirement. This type of trust can offer various advantages for both employers and employees. For employers, it allows them to attract and retain top executive talent by offering an additional retirement benefit. It can also provide tax advantages for the employer since the funds are typically deductible when they are paid out to the employee. For executive employees, the trust offers a means of deferring compensation and potentially reducing taxable income in the current year. It also provides a source of retirement income outside traditional retirement savings plans such as 401(k) or pension plans. It's important to note that there may be various types or variations of the San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust. The specific details and provisions may vary depending on the employer's preferences and the needs of the executive employees. Examples of potential variations could include different vesting schedules, investment options, or payout options. In summary, the San Diego California Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specialized trust designed to offer executive employees a deferred compensation option. This trust allows employers to set aside funds in a separate account, ensuring that they are available to the employees at a later date. It provides benefits for both employers and executive employees, including attracting top talent, potential tax advantages, and additional retirement income options.
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.
