SECULAR TRUST
01.Core Concepts
• Irrevocable Trust • Holds set-aside funds of a NQDC Plan for the benefit of executive. • Trust funds are not available to employer or the employer’s creditors. • Usually, no substantial risk of forfeiture for employee. • However, trust may require a vesting period. In such a case, the executive would have substantial risk of forfeiture until meeting the vesting period requirements. • Without substantial risk o f forfeiture, value of trust is taxable to executive at the time it is funded.