Commuter Accounts are individual fringe benefits defined and regulated by IRS Code. They allow you to save on taxes by paying eligible employment-related commuting expenses with pre-tax dollars.
Types of Accounts
There are two types of accounts. You can enroll in either or both.
Transportation Account: Use this pretax account to pay for qualified expenses for commuting by bus, ferry, rail, monorail, streetcar, train, subway or vanpool, when the expenses are not deducted by your employer from your pay pre-tax. Commuting means traveling between your home and your place of work on a regular basis. The monthly maximum contribution and reimbursement in a Transportation Account is $280 for the plan year 2023.
Parking Account: Use this pretax account to pay for qualified expenses incurred for parking your personal vehicle:
At or near your employer-provided workplace
At a location from which to commute to the workplace by mass transit facilities, commuter highway vehicle or carpool.
Personal vehicle includes car, truck, motorcycle and bicycle. The monthly maximum contribution and reimbursement in a Parking Account is $280 for the plan year 2023.
You can't use a Transportation Account to pay for agency-sponsored transit passes when payroll already deducts the value of those passes from your pay pre-tax. When added together, a Transportation Account monthly contribution and any payroll-deducted monthly transit cost can't exceed the monthly account maximum of $280 for the plan year 2023.
You can't use a Parking Account to pay for monthly state lot parking, because payroll already deducts that cost from your pay pre-tax. When added together, a Parking Account monthly contribution and the monthly cost for state parking can't exceed the monthly account maximum of $280 for the plan year 2023.
Enrolling In and Changing Accounts
You can enroll in a new account, or terminate or make changes to an existing account, at any time during the year. To enroll (outside of Open Enrollment), terminate or change an account, complete the Commuter Account Form and submit it to your agency or university. Changes are 'prospective;' they go into effect the first of the month after your form is received.
Using the Account
PEBB contracts with ASIFlex to administer Commuter Accounts to ensure they align with federal tax code. Visit the ASIFlex website to find claim forms and administrative information.
The deadline for submitting claims for qualified
expenses is March 31st for expenses incurred in the
previous plan year. Claims incurred in the prior plan year will be denied if
they're submitted after the March 31st deadline. If a prior year’s claim is denied, funds
in the account are still available for expenses incurred in the current plan
year, and you can adjust your monthly contribution as needed.
You can be reimbursed for qualifying expenses incurred in one month only to the IRS-allowed limit: For the plan year 2023, that means a maximum of $280 per month for a Transportation Account and $280 per month for a Parking Account. Expenses must be "incurred or paid" before being reimbursed.
It's a good idea to make prospective changes to your monthly contribution amount when you anticipate a reduction in future monthly expenses. This allows you to keep your account in balance with no excess contribution. Note that all changes are prospective; they cannot be retroactive.
Per IRS Code, there is no refund of dollars from these accounts. If you decide to end an account, you have 180 days to continue to use remaining funds for reimbursement of qualified expenses. In addition, if you leave state employment, you will have access to your funds for 180 days, and only for reimbursement of valid claims incurred while you were an active employee. Your funds will forfeit after 180 days.
Accounts with no activity, contributions or reimbursements within 180 days are terminated. Any remaining funds are forfeited.
These accounts can't reimburse non-qualifying expenses.
Examples of non-qualifying expenses for Transportation Accounts include, but are not limited to, the following:
· Payments for carpooling or riding to work in a friend or colleague's car
· Fuel/gasoline, mileage or other expenses to operate a vehicle
· Tunnel, bridge or highway tolls
· Non-work related transportation
Examples of non-qualifying expenses for Parking Accounts include, but are not limited to, the following:
· Parking in a site which you pay for by pretax payroll deduction
· Parking not related to access to your workplace
· Parking related to access to a spouse/partner's or dependent's workplace
· Parking anywhere on your drive to or from your workplace
If you have questions about your enrollment or participation in a Commuter Account, please contact our Member Services team at 503-373-1102 or email@example.com. For claim forms and more information about qualified expenses visit the ASIFlex website or call ASIFlex at 1-800-659-3035.