Parking and Transportation Fringe Benefit Plans

A Transportation Fringe Benefits Plan (Section 132) enables you to set aside pre-tax dollars to pay for your work-related parking and commuting costs. If you have to pay for your parking or commuting costs, this is the right benefit for you.

Eligible Expenses for Parking and Transportation Fringe Benefits

Parking & Transportation Conversion

Your employer may provide you with the ability to purchase mass transit or parking benefits through a payroll deduction. Employer sponsored parking lots and bus passes are examples of expenses that can be paid for this way. These deductions are automatically taken pre-tax from your paycheck and you don’t need to do anything to enjoy this benefit.

Parking Conversion Tax Savings Example

Parking & Transportation Flexible Spending Accounts

If you pay out of pocket for work related commuting and parking expenses, the Parking and Transportation Flexible Spending Account will help you save money!

Mass Transit Reimbursement Tax Savings Example

Parking Reimbursement Tax Savings Example