Parking and Transit Flexible Spending Accounts
Key Takeaway
A qualified parking and/or transit flexible spending account (FSA) allows employees to pay for eligible parking/public transit expenses with pre-tax dollars. Unlike other FSAs, a parking and transit plan allows for greater flexibility with enrollment and election changes.
How It Works
Prior to each plan year, employees elect how much they would like to have taken out of their paycheck on a pre-tax basis to contribute into the parking or transit FSA. Contributions are deducted from each payroll. The amount contributed should be carefully considered to match your predicted expenses. Parking and transit FSAs may allow you to adjust your contributions mid-year if your expenses change and may also allow you to rollover unused amounts from plan year to plan year. See your employer for your specific plan details.
As eligible expenses are incurred, employees submit claims to Alerus for reimbursement. Alerus reimburses employees by check or direct deposit. Your plan may also include a debit card for making purchases directly.
Important Facts
- New elections are required each plan year.
- Employees can join the plan mid-year and/or change elections each month if necessary.
- Unused funds will accumulate each month throughout the year until used for eligible expenses, however, reimbursements for eligible expenses for a given month cannot exceed the monthly statutory maximum.
- Certain plans may have funds carryover into the next plan year. Please consult your plan design details and your Employer for your specific carryover provisions.
- For your plan design details, including plan limits and carryover provisions, please consult your Employer and the Plan Design Checklist. To access your plan design details log in to your plan online and click on Tools & Support.
Eligible Expenses
Parking
Parking at the employee’s place of business or at the location from which the employee takes transportation to work.
Transit
Work-related transportation, including mass transit passes like vouchers, tokens, or fare cards used for buses, ferries, trains, etc., or vanpools where the vehicle seats at least six adult passengers.
Submitting Claims
You can submit claims online, through the Alerus Benefits mobile app, or by completing a Reimbursement Request Form. Your plan may require itemized documentation substantiating your parking or transit claim. See your employer for details specific to your plan.