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A rabbi trust is so called because the first such trust was established by a Jewish congregation for its rabbi. The congregation applied for and obtained a private letter ruling (PLR) from the Internal Revenue Service (IRS) which clarified the tax consequences of the establishment of the trust to the rabbi.
A rabbi trust is so called because the first such trust was established by a Jewish congregation for its rabbi. The congregation applied for and obtained a private letter ruling (PLR) from the Internal Revenue Service (IRS) which clarified the tax consequences of the establishment of the trust to the rabbi.
The Rabbi Trust is a non-qualified deferred compensation plan in which funds are invested in an irrevocable trust and held for the benefit of employees for retirement purposes.
A major distinction between secular trusts and rabbi trusts is that the money held in a secular trust cannot be docHubed by an employers bankruptcy creditors. In contrast, creditors can claim assets held in a rabbi trust after bankruptcy.
As long as the employers financial position is sound, the money in a Rabbi Trust is considered to be relatively safe. However, if an employer files for bankruptcy protection, the money may be subject to the claims made by that employers general unsecured creditors.
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In the United States, the rabbi trust is a non-qualified, deferred compensation arrangement created by employers for their employees. The first Internal Revenue Service Letter ruling approved the use of this type of trust involved a Rabbi; thus, it is called the Rabbi Trust.
A rabbi trust is so called because the first such trust was established by a Jewish congregation for its rabbi. The congregation applied for and obtained a private letter ruling (PLR) from the Internal Revenue Service (IRS) which clarified the tax consequences of the establishment of the trust to the rabbi.
A rabbi trust is a type of trust used by companies to provide non-qualified benefits to key employees. Most rabbi trusts are irrevocable, meaning a company cant take the assets out once theyve been put in. Employees can defer taxes on contributions made to a rabbi trust, but employers cant do so.
A rabbi trust is so called because the first such trust was established by a Jewish congregation for its rabbi. The congregation applied for and obtained a private letter ruling (PLR) from the Internal Revenue Service (IRS) which clarified the tax consequences of the establishment of the trust to the rabbi.
As long as the employers financial position is sound, the money in a Rabbi Trust is considered to be relatively safe. However, if an employer files for bankruptcy protection, the money may be subject to the claims made by that employers general unsecured creditors.

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