Rabbi Trusts: Benefits, Features, And Key Considerations

by Michael W. Hlavin

Your company’s promise to pay nonqualified deferred compensation may be a contract right, but if the funds aren’t there or your company changes its mind, you may end up with expensive litigation and an uncollectible judgment. The use of a rabbi trust can provide some security for your NQDC against company insolvency or a corporate change of heart.

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