A commuter account is an employer-sponsored benefit
program that allows an employee to set aside pretax
funds in an separate account to pay for qualified
workplace mass transit and parking expenses.
Transit includes Mass Transit and Van Pooling:
How much can I contribute?
- Mass Transit includes Transit passes, tokens, fare cards, vouchers, or similar
items entitling you to ride a mass transit vehicle to or
from work. The mass transit vehicle may be publicly or
privately operated and includes bus, rail, or ferry. Van Pooling
- Van-pooling is not to be confused with carpooling. Vanpooling
requires a commuter highway vehicle with a
seating capacity of at least 7 adults, including the driver.
At least 80 percent of the vehicle mileage must be for
transporting employees between their homes and
workplace with employees occupying at least one-half
of the vehicle’s seats (not including the driver’s seat).
Monthly limits are set by the IRS. The parking deduction
is limited to $260 per month. The transit deduction
is set at $260 per month. Your monthly balance is carried forward and you can make
adjustments to your contribution, join, or terminate plan participation at any time.