Suresh is a sales representative for Swinley Manufacturing. The corporation maintains a defined contribution profit-sharing plan on behalf of its employees. It contributes 15 percent of each employee’s salary. Suresh’s salary for 2020 is $200,000. Because of his record sales achievement during the year, the company decides to pay Suresh a bonus of $95,000. He is aware of the tax benefits associated with pension plans and has asked the controller of the company to pay him $35,000 of the bonus in cash and to contribute the remaining $60,000 ($95,000 2 $35,000) to his pension. Prepare a letter to Suresh explaining the tax consequences of his proposal.