Jump to content

Rabbi Trust


Recommended Posts

I'm curious what others think about the impact, if any, of an employer getting a creditor to agree not to pursue "assets" in a rabbi trust in the event of the employer's insolvency. Would this separate agreement somehow make this a funded trust in the eyes of the IRS since the trust assets would no longer be subject to the employer's creditors?

Link to comment
Share on other sites

Moona's discomfort would certainly be justified. The one creditor that this exception would be negotiated with would likely be the biggest creditor, the one for which the participating employees have the most concern raiding the general assets of the employer and thus want this negotiated. And by eliminating such a creditor's ability to go after those modified Rabbi trust assets, you'd be decreasing the risk of forfeiture--likely below the substantial level.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...