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

2. 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

3. 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

4. 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

5. What’s exciting?

6. 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