If you travel to and from work, you could be saving on those travel-related expenses with a Commuter (aka Transit) plan. A Transit/Commuter plan is an employer-sponsored fringe benefit where employees can use set-aside money to help cover the cost of commuter expenses.
Commuters may receive both the parking and transit benefits, up to $520 per month, at the same time. However, you cannot receive bicycle benefits along with the other commuter benefits. Also, if you use both mass transit and vanpooling, you can only claim a total of $260.
If your plan has an account-linked debit card, you may use those pre-tax dollars to pay for most commuting costs, except for bicycle expenses. Depending on where you live, such as in some major cities, your account-linked debit card may have terminal restrictions that allow you to use your card only where fare media is sold.
For those who use the bicycle benefit, you must pay for the expense first, then submit a claim for reimbursement.
You may change your pre-tax contributions at any time, and some commuter plans allow for rollover at the end of the year for unused funds.
For more information about Transit accounts, check out these blogs from the Captain:
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