Transportation Plans FAQs

What is a Transportation Reimbursement Account?

  • A Transportation Reimbursement Account is an employer sponsored plan governed by Section 132 of the Internal Revenue Code. This plan allows employees to pay for work-related transit vouchers, vanpooling and qualified parking expenses with pre-tax dollars.

What is a transit pass?

  • "Transit pass" means any pass, token, fare card, voucher, or similar item that entitles you to transportation (or transportation at a reduced price), provided that such transportation is on mass transit facilities, or provided by an entity in the business of transporting persons if such transportation is provided in the type of highway vehicle eligible for use in vanpooling.

What is considered "qualified parking?"

  • "Qualified parking" is that which is provided to an employee at or near the employer’s business premises. It also includes parking at or near a location from which the employee travels to work by mass transit, vanpooling, in a commuter highway vehicle, or by carpool. Parking at or near the employee’s home doesn’t qualify.

What are the 2009 Limits for Transportation and Parking?

  • The monthly limits on the amount that may be deducted from an employee's income pre-tax are:
    • $230 for qualified parking expenses
    • $230 for transit passes and vanpooling expenses combined

Is the Transportation Reimbursement Account a Pre-Funded Account?

  • The Transportation Reimbursement Account is not a pre-funded account. This means that you will only be reimbursed up to your account balance at the time you submit your claim. If your claim is for more than your account balance, the unreimbursed portion of your claim will be tracked by Flexible Benefit Administrators. You will be automatically reimbursed as additional deductions are taken and deposited into your account, until your entire claim is paid out.

What information will I need to submit for reimbursement?

  • You will need to submit proof of payment along with a Transportation Reimbursement Claim Form. For example, if you purchase a monthly bus pass, you will need to submit the monthly receipt as your proof of payment.

When can I submit my reimbursement request for Parking?

  • Reimbursement can be requested once payment has been made to the transit provider. You have your entire Plan Year plus any applicable run-out period, as stated in your Transportation Guide, to submit for reimbursement.

Does the "Use it or lose it rule" apply to Transportation Plans?

  • Any money you do not use from your Transportation Reimbursement Account for expenses incurred during a Plan Year can be rolled over to the next Plan Year. However, you must re-enroll each Plan Year. Please refer to your employer’s Transportation Guide for more details.

Am I able to make changes to my elections?

  • Yes. You may stop, start, increase or decrease your elections for your Transportation Reimbursement Account as needed throughout the Plan Year.

What if I terminate employment?

  • If you terminate employment, participation in the Transportation Reimbursement Account will cease. You can no longer make contributions. If you have unclaimed funds in your account at the time of termination, these funds will be forfeited. However, you may submit for any eligible expenses paid for prior to your termination date.