Rabbi Trust / Benefits Paid By Company vs. Trust

[Guest Fourohonekay]

Company sponsors a "top-hat" NQDC plan for its executives. The plan is "funded" through the use of a Rabbi Trust. The Company finds it easier to make benefit payments under the NQDC plan via its payroll mechanism rather than directly out of the Rabbi Trust account (for which there is no real mechanism for benefit payments other than check writing by the Trustee). Logistically, the withholding obligation, etc. with respect to the NQDC benefit payments is much more efficient when done this way.

Does anyone see a problem with amending a Rabbi Trust to require the Trustee to reimburse the Company on a quarterly basis for NQDC plan benefits that the Company has itself already paid out during that quarter via its payroll mechanism?

Thanks.

[mbozek]

Assuming the trustee has no problem, no.