Signing Bonus / 401k

[austin3515]

Let's say an employee is getting a signing bonus for $1,000 if he/she agrees to take a position with Company A. The employee is getting the bonus in their first paycheck, and eligibility is immediate. Assuming the document does not specifically exclude any form of bonus, is there any reason not to treat sign-on bonus as eligible wages for purposes of calculating the 401k payroll deduction?

For example, the bonus is not related to services provided. So, similar to severance only the complete opposite. Biazaaro Severance if you're a Seinfeld fan!

Personally I think it is clearly eligible but I am trying to explore this fully and hear other opinions.

[ETA Consulting LLC]

I think it is eligible. Just look at is as large rate of pay for the first hour of work. Hence, it "is", in effect, related to services provided. I cannot fathom it being an issue.

Good Luck!