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Can you add a plan to an existing irrevocable rabbi trust?


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We have seen many circumstances where an employer has an existing rabbi trust and now has a 2nd or 3rd deferred compensation plan that they want to add an account for under the existing rabbi trust.  Is this an acceptable amendment?  Would consent of the existing beneficiaries be required?

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I think you can do it, if the bank is willing. You would want to have some way of dividing the assets, obviously, e.g. if they are all invested in the same way it would be proportional, similar to a master trust for separate, but related, qualified DB plans.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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It really depends on the terms of the trust document.  I usually see sub-trusts for each plan where assets can be reallocated only when there are excess.  I haven't seen beneficiary consent to do this, but I have seen trustees be concerned about irrevocability. 

 - There are two types of people in the world: those who can extrapolate from incomplete data sets...

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