Commuter Benefits FSA: What it is and how it’s beneficial
A Commuter Benefits Flexible Spending Account (FSA) is an employer-sponsored account that allows participants to set aside pre-tax funds to pay for qualified mass transit and parking expenses associated with their work commute. There are two Commuter Benefit accounts: transportation and parking. Each of these accounts may receive a monthly contribution limit of $300, starting in 2023.
What to know about this account
- You must have funds in a commuter benefits account before using
- Any unused funds in a transportation and/or parking account will be lost at the end of the plan year
- Adjustments to a contribution can be made at any time; termination included
- You can manage this account online at www.NueSynergy.com or via the NueSynergy smart mobile app
Questions to consider
Why should I enroll in a Commuter Benefits account?
This account is ideal if you expect to incur commuter expenses that won’t be reimbursed by another plan. Money contributed to a Commuter Benefits account is free from federal and state taxes and remains tax-free when spent on eligible expenses.
What expenses are eligible for this account?
This all depends on which commuter account you plan on choosing. For a transportation account, expenses such as transit passes, tokens, fare cards, vouchers or items entitling you to ride a mass vehicle are eligible. For a parking account, eligible expenses consist of parking expenses incurred at/near place of work and out-of-pocket parking fees for parking meters and lots.
How do I use my Commuter Benefits FSA to pay for eligible expenses?
You can either use the NueSynergy smart debit card or pay your personal funds and submit a claim reimbursement.