Qualified Transit Plans Update Plans Update update Susan P. Luskin, FLMI, CLU, CEBS, RHU, ChHC At Diversified Administration, Inc’s 2017 Spring Business Connection

What is a Section 132 Qualified Transportation Plan? A plan established by the employer for the benefit of the employees which permits the employer to provide to the employees on a tax-free basis Qualified Parking Benefits & Transit passes Transportation in a commuter highway vehicle for travel from the employee’s place of residence to the place of employment Certain bicycle commuting expenses – after 2009 Important – Sun Pass or EZ Pass not a qualified benefit and may not be pretaxed

What are the maximums that an employee can elect? Qualified Parking - $255/mo Parking at a permanent location only (1 year or more expected) Parking at a temporary location may not be reimbursed pretax This is the same amount as permitted in 2016

Maximum elections – continued. Transit pass and/or commuter highway vehicle - $255 per month combined Bicycle commuting expense - $20 per month These maximums are evaluated by the IRS every year and adjusted if necessary

What’s exciting?

How is the benefit received by the employee? Pretax payroll deduction Reimbursement method Transportation debit card Transit pass Most likely in employer provided parking lots or commuter vehicles. Receipts submitted; available only if vouchers are not readily available to the employer to distribute to the employees Considered by the IRS to be “vouchers” for plan purposes Any pass, token, farecard or voucher that permits a person to use public transportation