Compensation Glossary

# A B C D E F G H I J K L M N O P Q R S T U V W - Z

Rabbi Trust

This nonqualified arrangement, allows the employer to set money aside expressly to pay for excess pensions or deferred pay. Employers do not take a tax deduction, and the beneficiaries do not pay tax on contributions to the trusts until such time that they start receiving their money. Although funds are subject to employer's creditors, they are not accessible to current and future management.
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