Transit Contribution Limits for 2024
The costs associated with traveling to work can accumulate rapidly, but with a Transit (also known as Commuter) account sponsored by an employer, an individual can reserve funds before taxes and reduce expenses associated with transportation, such as parking fees and public transportation fares. Recently, the Internal Revenue Service (IRS) announced updated annual transit contribution limits for commuter plans.
For 2024, the maximum monthly contribution for Parking will be $315, and the maximum monthly contribution for qualified mass transit such as bus, subway, or train fares will be $315.
There are two types of transit/commuter benefit accounts:
- Parking. Includes the cost of parking either in close proximity to the workplace or at a designated area for vanpooling, carpooling, or using mass transit.
- Mass Transit / Commuter Highway Vehicle (Vanpool). Includes the expenses for commuting via bus, train, subway, ferry, and other transportation modes to and from work. It can also be utilized to cover the fare on vehicles accommodating six or more adults, such as vanpools.
You have the flexibility to modify your pre-tax contributions whenever necessary. Certain transit plans may permit the carryover of unused funds to the following year.
Annual Transit Contribution Limits
Mass Transit / Vanpool
2024 Transit Contribution Limit
2023 Transit Contribution Limit
Important Notes about Transit Accounts
- An employee can have both parking and transit benefits at the same time.
- If you possess a benefits debit card, you can utilize it to cover the majority of commuting or parking expenses in locations where the card is accepted. However, in certain major cities, there may be restrictions on the terminals that limit card usage to locations where fare media is sold.
- Make sure to keep your receipts. Your benefits administrator may ask to verify your purchases.
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