Parking & Transit
Flexible Spending Account
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.
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
Download a printable summary of the parking & transit FSAs:
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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
Check out this video with more info on commuter benefits.
Answers to your questions
Questions? We have answers! Here are your most frequent parking & transit FSA questions.
Q: How do these FSAs work?
A: Determine how much you need during the year for eligible 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, submit a claim or use your FSA debit card. Save your receipts to verify expenses.
GET MORE INFO!Q: Which expenses are not eligible?
A: 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.
Q: Who is eligible?
A: 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.
Q: What's the annual maximum?
A: The maximum may adjust annually for inflation. For the current maximum, see IRS Publication 969. There is no minimum.
Funds are available as they are deducted from your paychecks and deposited into your accounts. Unlike the traditional FSA, your annual election's funds are not available in a lump sum up front. You may change your election at any time.
Q: Are they "use it or lose it"?
A: 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.
Q: Can I combine both accounts?
A: No. Parking and transit FSAs are completely separate accounts.
Funds cannot be transferred between accounts, rolled over from one to the other, combined, or commingled in any way. You cannot, for example, use a transit FSA to cover parking expenses.
Lingering questions? We've got you! Get even more answers here.
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