View Single Post
Old 01-05-2025, 10:27 PM   #104
Locke
Franchise Player
 
Locke's Avatar
 
Join Date: Mar 2007
Location: Income Tax Central
Exp:
Default

Quote:
Originally Posted by Strange Brew View Post
This really is a good question.

When corporations have deferred compensation plans in which all employees can participate, the plans are qualified, the assets placed in a trust and protected from creditors.

I don’t imagine these plans are qualified though because they are negotiated individually. The assets can still be placed in a rabbi trust which means the organization can not access them. But they are still subject to creditor claims in a bankruptcy.

It’s an issue with deferred compensation plans for executives. You get potential tax savings but you are taking on some credit risk.

This is in the US. May be different in Canada.
That was my thinking as well.
__________________
The Beatings Shall Continue Until Morale Improves!

This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.

The World Ends when you're dead. Until then, you've got more punishment in store. - Flames Fans

If you thought this season would have a happy ending, you haven't been paying attention.
Locke is online now   Reply With Quote