Parking & Transit Flexible Spending Accounts

The parking and transit FSAs allow you to set aside pre-tax dollars for IRS-approved, work-related parking or mass-transit commuting expenses.

Unlike traditional FSAs, the IRS does not have a "use it or lose it" rule for the parking or transit FSAs. Any funds unused at the end of the calendar year are rolled over to the next year.

Learn More: FSA 101

Eligible Expenses Include

Parking:

Parking your vehicle in a facility at or near your place of employment
Parking at a location from where you commute, such as a train or bus station lot
Important note: The parking and transit FSAs are for work-related transportation expenses. Parking fees, rental cars, bus, taxi, train or plane tickets, ambulance, and other transportation expenses for medical care can be reimbursed with your FSA or HSA health-related accounts.

Transit:

Transit passes to and from work, including the cost of tokens, passes, fare cards, vouchers
Tickets or monthly passes for mass transit systems such as trains, buses, and subways
Transportation provided by a qualified private transportation company
Transportation in a commuter highway vehicle
Qualified bicycle reimbursement

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Here's a quick overview:

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Beginners: Start Here!

Are you taking advantage of your pre-tax savings accounts, such as FSA or HSA? Let’s break it down:

What are tax-advantaged benefit accounts
What is an eligible expense
How much to save
How they save you money

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Answers to Your Questions

Determine how much you need during the year for eligible work-related parking or transit expenses. We withhold that amount from each of your paychecks pre-tax in equal installments and deposit it into your accounts.

When you have an eligible expense, simply use your FSA debit card at the point of sale.

Alternately, you can pay with your own funds up front and submit a claim for reimbursement. Save your receipts; you may be required by the IRS to verify expenses.

These FSAs cover your own work/commute-related public transportation only. Expenses such as taxi, private limo to an airport, and your own car are not allowed by the IRS.

Parking and transit expenses relating to medical care are also not eligible. You can get reimbursed for those costs through your FSA or HSA since those are health-related accounts.

Vehicle-related exenses are also not eligible for reimbursement. These expenses include gas, mileage, tolls, wear-and-tear, maintenance, and repairs.

Nope; unlike the traditional FSA, you may roll over any unused funds to the next year.

If your employment ends, you may claim expenses incurred only through the date of your termination and submit all claims within 30 days. Any remaining funds may be forfeited.

Anyone currently eligible for benefits. You may choose to enroll in one or both FSAs for parking and transit, and may hold them concurrently with the FSA, LPFSA, DCA, and HSA.

Unlike other FSA plans, the parking and transit FSAs apply only to you. You cannot use these funds to pay for family members' parking, commuting, or mass transportation expenses.

The Parking FSA and Transit FSA accounts are "money in, money out" accounts. Funds are available as soon as they are deducted from your paycheck and deposited into your account, and not before.

You'll receive a debit card that's automatically loaded with your available funds. Use the debit card to pay directly at the point of sale.

Watch this video for more info about the debit card:

Read more in-depth questions and answers specific to your FSA debit card:

Debit Card Info

Yes. You may utilize a parking or transit FSA concurrently with other tax-advantaged saving accounts, including the FSA, HSA, LPFSA, and DCA. This account is also available regardless of any other benefit plans you elect or waive. You can also hold BOTH parking and transit FSA accounts concurrently.

Yes. Although this is a pre-tax contribution, the IRS does recognize that transportation may change throughout the year, as long as you do not exceed the maximum allowable contribution. You do not need a qualifying event. All changes you make are effective going forward, not retroactively.

The maximum adjusts each year for inflation. For the current maximum, see IRS Publication 969. There is no minimum.

You can also see maximums in the annual deferral limits section of this page:

Annual Deferral Limits

No. Per IRS regulations, you must re-enroll each calendar year. Check out our annual FSA enrollment resources for more info on how that works:

FSA/HSA Annual Enrollment

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