Rabbi Trust

[firehawkocean]

I have a question regarding a Rabbi Trust.

I am a tribal member of a sovereign Indian tribe.

The individual tribal members receive gaming revenues and the tribe (as an entity) has set up a plan similar to a 401k. it was referred to as a rabbi trust by the investment firm manager.

I am concerned about the sovereignty issue when paying into this plan. tribes do not answer to states in any way. furthermore, this is NOT a 401k. what if the tribe declares bankruptcy 20 years down the road? what if there are political issues in the tribe that causes the funds to be held back? Any thoughts?

[jpg7n16]

A Rabbit trust is outside of the control of the company/tribe, and is not accessible to the company/tribe in the event of bankruptcy.

From: Rabbi Trust Definition

Investopedia explains Rabbi Trust

Called a Rabbi trust due to the first initial ruling made by the IRS on behalf of a synagogue, these forms of trusts create security for employees because the assets within the trust are typically outside the control of the employers and are irrevocable.

Your money would be perfectly safe held in the trust in the event of bankruptcy.