rabbi trust

rabbi trust definition - business

rabbi trust

A nonqualified deferred compensation arrangement in which an employer contributes funds to the irrevocable trust for the benefit of an employee. Assets held in a rabbi trust are subject to claims by creditors of the employer in the event the employer declares bankruptcy.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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