Considerations for Determining Longevity or Bonus
401(k) or 457
Plan Deferral Amounts

• The combined Old Age Survivors and Disability Insurance (OASDI) and Medicare tax rate is 7.65% and comes out of longevity whether on a combined or a separate check.
  
• The amount of OASDI and Medicare taxes is also a part of federal taxable wages.
• All pre-tax deductions (deferrals for 401(k) and/or 457 plans, flexible benefits deductions, pre-tax health and dental insurance premiums, etc.) reduce federal taxable wages.
  

• If you elect a deferral that is greater than your remaining wages less your total tax liability, the system will automatically reduce your deferral election to pay required taxes.

• Any post-tax deductions (for 401(k) Roth plans, savings bonds, charity contributions, TSEA dues, etc.) are taxable.
  
• For your personal circumstances, consult your tax advisor.