Bonus Employees for Participating in Company Retirement Plan

We have a client who is thinking of establishing a SIMPLE IRA Plan for his employees. Is he able to pay a bonus to employees who participate in the SIMPLE IRA? He would pay it to them as a pay roll bonus…not an additional contribution to the SIMPLE IRA account.



Is this practice of bonusing emloyees illegal or a violation of IRS/ DOL Regs?

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