Randy Watson Posted July 20, 2006 Posted July 20, 2006 Tax exempt 457(b) plan holds assets in a rabbi trust. The deferrals are fully vested when made. Does the nature of the rabbi trust create enough risk of forfeiture that FICA should not be withheld at the time of the deferral?
jpod Posted July 20, 2006 Posted July 20, 2006 No. If there is "vesting," then there is no risk of forfeiture for purposes of 3121(v). The existence or non-existence of a Rabbi Trust or any other informal funding vehicle is irrelevant.
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