Rabbi trust

Okay kiddo, so imagine you want to save your allowance money for something special, like a toy or a game. But you don't want to keep all of your money in your piggy bank at home, because if someone sees it, they might take it from you.

So instead, you decide to give your money to someone you trust, like your parent or a friend, and ask them to keep it safe for you. That way, you know your money is protected and you can still use it when you need to.

Well, a rabbi trust is kinda like that, but for grown-up people who work for a company. When someone works for a company, they usually get paid a salary or wages for their work. But sometimes, they might be promised extra money in the future, like a bonus or a pension, if they work for the company for a certain amount of time.

That's where a rabbi trust comes in. It's an arrangement where the company sets aside some money, like your allowance money, and puts it in a special account. This account is managed by a trustee, who is like the person you trust to hold your money for you.

The company promises to pay the extra money to the worker in the future, but instead of keeping that money in the company's bank account, they put it in the rabbi trust account. That way, the worker knows that the money is set aside and protected, and they can still use it when they retire or reach a certain milestone.

The rabbi trust is named after a Jewish tradition where a rabbi would hold money in trust for someone who wanted to give it to charity but wasn't sure which charity to give it to yet. So, just like your parent or friend holding your allowance money for you, the rabbi trust is a way for workers to save their future money in a safe place.