Well if you want to know the complicated answer, its an Employee Grantor Trust using the California Civil code 704.115. It was created in 1970 so that Californians could have an avenue to save for retirement. In 1974, the federal government took the idea and turned it into what everyone knows as the 401k. Back in 1970 the 401k was called a salary reduction plan due to the high taxes, but we digress.
Watch our video and it will help you understand what a PRT is and how it can work to protect your retirement. Trust us, its worth 2 minutes of your time.
Make Sure and read our PRT 101 series to get fully educated. Also if you have any questions to not hesitate to ask.
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