Reported 4 days ago
A rabbi trust is an irrevocable trust used by employers to set aside funds for deferred compensation of key employees. Named after a 1980 IRS ruling, these trusts allow tax deferral but also expose assets to creditor claims if the employer faces bankruptcy. While they aid in employee retention and provide flexible payment structures, rabbi trusts lack the same protections as traditional retirement plans. Consulting with a financial advisor is crucial for assessing their suitability in retirement planning.
Source: YAHOO