This type of executive retirement plan is unfunded and can be issued upon retirement,termination,or death,but the assets must be released to creditors if the company files for insolvency or bankruptcy.(Rabbi Trusts)

Question

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Rabbi trusts are unfunded and used for executive retirement plans. However, if the company goes bankrupt or insolvent, the assets in the trust may be released to creditors. Employee-owned annuities, secular trusts, and corporate-owned life insurance are not necessarily subject to this same risk.

This Type of Executive Retirement Plan Is Unfunded and Can