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.
Queens New York Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specific type of trust established in Queens, New York, intended for the benefit of executive employees. This trust is commonly referred to as a Rabbi Trust and serves as a vehicle to defer the compensation of high-level executives in order to provide future financial security. The Queens New York Nonqualified Deferred Compensation Trust operates under the guidelines set forth in the Internal Revenue Code Section 402(b), which permits the deferral of compensation for executives. By deferring compensation, executives can delay taxation on the income until it is withdrawn from the trust, often during retirement when their tax rates may be lower. One significant aspect of the Queens New York Nonqualified Deferred Compensation Trust is that it is nonqualified, meaning it does not comply with the requirements of a qualified plan under the Employee Retirement Income Security Act (ERICA). By not conforming to ERICA regulations, the trust offers greater flexibility in the design and operation of the plan, allowing for customized features and benefits tailored to the needs of the executive employees it serves. In terms of different types of Queens New York Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, there may be variations based on specific eligibility criteria, vesting schedules, and distribution options. Some types of Rabbi Trusts may offer a choice of investment options, allowing executives to have control over the growth of their deferred compensation. Additionally, specific provisions may exist to ensure the protection of executive assets in the event of a change in control or bankruptcy of the employing company. Keywords: Queens New York, nonqualified deferred compensation trust, executive employees, Rabbi Trust, deferred compensation, financial security, taxation, retirement, qualified plan, Employee Retirement Income Security Act, ERICA, flexibility, customized benefits, eligibility criteria, vesting schedules, distribution options, investment options, change in control, bankruptcyQueens New York Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust is a specific type of trust established in Queens, New York, intended for the benefit of executive employees. This trust is commonly referred to as a Rabbi Trust and serves as a vehicle to defer the compensation of high-level executives in order to provide future financial security. The Queens New York Nonqualified Deferred Compensation Trust operates under the guidelines set forth in the Internal Revenue Code Section 402(b), which permits the deferral of compensation for executives. By deferring compensation, executives can delay taxation on the income until it is withdrawn from the trust, often during retirement when their tax rates may be lower. One significant aspect of the Queens New York Nonqualified Deferred Compensation Trust is that it is nonqualified, meaning it does not comply with the requirements of a qualified plan under the Employee Retirement Income Security Act (ERICA). By not conforming to ERICA regulations, the trust offers greater flexibility in the design and operation of the plan, allowing for customized features and benefits tailored to the needs of the executive employees it serves. In terms of different types of Queens New York Nonqualified Deferred Compensation Trust for the Benefit of Executive Employees — a Rabbi Trust, there may be variations based on specific eligibility criteria, vesting schedules, and distribution options. Some types of Rabbi Trusts may offer a choice of investment options, allowing executives to have control over the growth of their deferred compensation. Additionally, specific provisions may exist to ensure the protection of executive assets in the event of a change in control or bankruptcy of the employing company. Keywords: Queens New York, nonqualified deferred compensation trust, executive employees, Rabbi Trust, deferred compensation, financial security, taxation, retirement, qualified plan, Employee Retirement Income Security Act, ERICA, flexibility, customized benefits, eligibility criteria, vesting schedules, distribution options, investment options, change in control, bankruptcy
