Transit Reimbursement Account
What It Is
The Transit Reimbursement Account is a program that allows you to set aside money, before taxes, from your paycheck to pay for mass transit costs associated with your commute to work. The great advantage is that you pay no federal taxes on your contributions. For example, if you put in $1,000 and are in a 20% federal tax bracket you save $200 ($1,000 x 20% = $200).
If you pay for mass transit and your expenses are considered eligible as described below the Transit Reimbursement Account may save you money.
This program applies only to employees. Parking expenses of dependents are not covered.
Eligible Transit Expenses
An expense for “Transit Passes” (the cost of purchasing any pass, token, fare card, etc.) entitles an employee to transportation that either is:
- on mass transit facilities, or
- provided by a person in the business of transporting passengers for hire and in a vehicle with a seating capacity of at least six adults plus driver. Limos and taxis are not eligible for this program.
Expenses may also include transportation in a “Commuter Highway Vehicle,” i.e., the cost of transportation between an employee’s residence and place of employment, provided the vehicle:
- has a seating capacity of at least six adults plus driver and
- is reasonably expected to be used for at least 80% of its mileage in commuter trips in which the vehicle is at least half full, not including the driver. Limos and taxis are not eligible for this program.
How It Works
It’s very simple. Each month you may choose to contribute between $10 and $125 into the account. The maximum allowed contribution amount is $125 per month. When you have an eligible expense, you have the option of filing claims online or you may save the receipt and fax or mail it in with the transit expense account reimbursement claim form to PayFlex to get reimbursed. Direct deposit from your expense account to your checking or savings account is also available by completing the direct deposit form.
Any unused funds remaining in your account at the end of the plan year will be rolled over to the next plan year. If you terminate employment or terminate your participation in the program with unclaimed contributions, the money will be forfeited.
If you terminate in 2012, you will have until March 31, 2013, to submit eligible expenses incurred prior to your termination date to PayFlex for reimbursement.
How Much to Contribute
The maximum allowable reimbursement is $125 per month. Excess expenses may be carried over and reimbursed in any other month during the same calendar year.
You can count on support from knowledgeable and responsive HR staff when you have a benefits question or problem. Just call or e-mail us. We’re here to help!
While the University intends to continue each of the benefit plans, the University reserves the right to terminate or amend any plan, at any time, and for any reason.