Section 125 and transportation expenses

[Guest Liz Propp]

It is my understanding that transit and employee parking expenses quality for Section 125 flexible spending accounts. Do you need to set up a new Section 125 account (vs use Dependent Care or Healthcare Expenses?). Can anyone point me towards the regulations on this issue?

[QDROphile]

Although certain parking and transit benefits may be provided on a pre-tax elective basis under section 132(f), they are not covered by section 125. See section 125(f).

[Guest jgroves]

Not only is it not part of Section 125, but there can be big problems if you put it in as

a cafeteria (125) benefit. I know at least in the Washington DC area, METRO (the public transportation people) hold meetings with HR people to tell them what the rules are how TEA 21 works. Anyhow, the biggest thing they say over and over again is "Do NOT put transportation expenses in your cafeteria plan".

[Sheila K]

Just to let you know, we have a pretty lengthy discussion of this same topic going at the "Miscellaneous Benefits" page. Come on over and check it out!

Sheila K

Moderator-Miscellaneous Benefits on Benefits Link