Employee Services
Transportation Reimbursement Plan FAQ's

1. What does a Transportation program cover?
2. How much can I set aside under a Transportation Program?
3. How long to I have to use my money elected under this program?
4. When can I submit for reimbursement under the Transportation program?

1. What does a Transportation program cover?
A qualified Transportation program allows for pre-tax deductions from payroll for qualified parking and mass transit expenses related to commuting to and from work. Van pooling expenses are included in the program, which is defined under Section 132 of the IRC.

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2. How much can I set aside under a Transportation Program?
The IRS indexes the maximum election amounts annually. The 2007 maximums are $200 for qualified parking expenses, and $105 per month for Mass Transit expenses.

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3. How long to I have to use my money elected under this program?
Amounts elected under a qualified Transportation program may be rolled to the next month for a six-month time frame. After six months, any unused funds are forfeited. In addition, an employee may only be reimbursed up to the maximum election amount allowed each month, regardless of the amount of money rolled from the previous month. For example, an employee can never be reimbursed more than $200 in any month for parking expenses, regardless of how much money is being rolled from the previous month.

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4. When can I submit for reimbursement under the
Transportation program?
A qualified Transportation program is managed as “balanced account”. Simply put, this means that employees can only access the amount of funds that have already been deducted from their payroll. In other words, you are never able to access more money than has been contributed to the program.

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