IRS Announces 2025 Contribution Limits for FSAs, Commuter Benefits
October 22, 2024
Transit Reimbursement
What is it?
A pre-tax transit benefit allows you to deduct the cost of work-related transit expenses from your paycheck before taxes.
How does it benefit you?
When you enroll in a transit account, you can save up to 40% of the amount contributed on your taxes. For example, if you contribute $1,000 to the account annually, you could save up to $400 on federal taxes.
Manage Your Account Online
Create your online account so you can check your account balance or order a Benefits Card. Download our mobile app to conveniently access your account anytime, anywhere. You can also manage your account when you log into your account from any of your mobile devices.
Download P&A’s MyBenefits Mobile App
Contribute
As a pre-tax transit account holder, you can only be reimbursed up to the amount you’ve accumulated in your account — a pay-as-you-go approach.
Deciding How Much to Contribute
Determine your monthly transit costs and set aside the total amount into your transit account.
Contribution Amount
In 2024, you can contribute a monthly maximum of $315. For 2025, you can contribute a monthly maximum of $325. This amount is indexed annually by the IRS and is subject to change. Unlike other pre-tax accounts, you can change your election amount monthly as needed. To change your monthly contribution, please see your HR or Benefits Department.
Eligible Expenses
Use this account to pay for any work-related commuter transit costs, including:
- Bus fare
- Train/subway fare
- Vanpooling
Get Reimbursed
Use your P&A Benefits Card to purchase eligible transit expenses. When you swipe your card, the expense is automatically deducted from your transit account – up to the amount available. You cannot debit more funds than what is currently available in your account.
Due to an IRS rule, transit claims are no longer accepted. You must use your Benefits Card in order to access your transit account.
Manage Your Account Online
Create your online account so you can check your account balance or order a Benefits Card. Download our mobile app to conveniently access your account anytime, anywhere. You can also manage your account when you log into your account from any of your mobile devices.
Download P&A’s MyBenefits Mobile App
Contribute
As a pre-tax transit account holder, you can only be reimbursed up to the amount you’ve accumulated in your account — a pay-as-you-go approach.
Deciding How Much to Contribute
Determine your monthly transit costs and set aside the total amount into your transit account.
Contribution Amount
In 2024, you can contribute a monthly maximum of $315. For 2025, you can contribute a monthly maximum of $325. This amount is indexed annually by the IRS and is subject to change. Unlike other pre-tax accounts, you can change your election amount monthly as needed. To change your monthly contribution, please see your HR or Benefits Department.
Eligible Expenses
Use this account to pay for any work-related commuter transit costs, including:
- Bus fare
- Train/subway fare
- Vanpooling
Get Reimbursed
Use your P&A Benefits Card to purchase eligible transit expenses. When you swipe your card, the expense is automatically deducted from your transit account – up to the amount available. You cannot debit more funds than what is currently available in your account.
Due to an IRS rule, transit claims are no longer accepted. You must use your Benefits Card in order to access your transit account.
FAQs
Due to IRS regulations, if you cease to work for your employer unused transit funds will be forfeited.
Unused funds will roll over and will be available to use on eligible transit expenses. If you terminate employment, you will forfeit all unused funds.
Unfortunately, transit claims are no longer accepted under IRS regulations. You must use your Benefits Card for all transit expenses.