The Preferred Group’s Commuter Reimbursement Account allows you to set aside a portion
of your gross salary to pay for work-related parking and mass transit expenses using pre-tax dollars. Paying your commuter expenses with pre-tax dollars can save you an average of 30 to 40% on your annual taxes.
Expenses that are eligible for reimbursement under our plan include:
- Parking your personal vehicle in a facility at or near your place of employment.
- Parking at a location from where you commute, e.g., a Park and Ride lot, train station or a commuter bus pick up point.
- Transit passes to and from work, including the cost of tokens, passes, fare cards, vouchers, etc.
- Mass transit public systems (Mass transit can be a public system, or a private enterprise provided by a company or individual who is in the business of transporting people in a "commuter highway vehicle.")
Expenses that are not eligible include:
- Tolls
- Traffic tickets
- Fuel
- Mileage costs or other costs incurred in operating a vehicle
- Taxis
- Carpooling with a neighbor or friend
- Parking at a Mall or similar location
- Costs that have been paid by your employer
How Much Can I contribute to the Commuter Reimbursement Account?
You may pre-tax any amount up to the monthly maximums set by the IRS.
The maximum monthly pre-tax contributions allowed are:
- $230 for mass transportation
- $230 for qualified parking
These costs may be combined for a Total of $460.00 monthly. This is a savings of $1,932.00 annually over post tax costs for parking and mass transit.
Example:
If you are currently paying $125.00 a month to park your vehicle or to use mass transit, you are actually spending $168.75 for this expense when you pay with post tax dollars. Paying with pre-tax dollars will save you $525.00 annually.
When employees use our Pre-Paid Benefits Card to pay for qualified transportation costs at a merchant accepting MasterCard®, funds are automatically deducted from the pre-tax dollars in their Commuter Reimbursement Account. Employees can view their account online at www.thepreferredgroup.com to keep apprised of charges, contributions, and current balances for the remaining plan year.