Commuter Transit and Parking
Commuter Accounts
Current Commuter Transit & Parking Pre-tax Monthly Limits
Tax Savings
Commuter benefits can add up to some serious tax savings. But how? You save money on taxes every month you participate (no waiting until the end of the year), which means more money in your pocket each month. Savings can add up to a whopping 40%.
How Much Can I Contribute?
Monthly limits are set by the IRS. 2025 contribution limits are $325 for parking and $325 for transit passes. Your monthly balance is carried forward and you can make adjustments to your contribution, join, or terminate plan participation at any time.
How Does It Work?
You authorize your employer to deduct a pre-tax amount for parking or vanpooling/transit from each paycheck, up to the IRS limits stated above. You pay for the qualified transportation with your benefits debit card.
Mass Transit
Transit passes, tokens, fare cards, vouchers, or similar items entitling you to ride a mass transit vehicle to or from work. The mass transit vehicle may be publicly or privately operated and includes bus, rail, or ferry.
Vanpooling
Vanpooling is not to be confused with carpooling. Vanpooling requires a commuter highway vehicle with a seating capacity of at least 7 adults, including the driver. At least 80 percent of the vehicle mileage must be for transporting employees between their homes and workplace, with employees occupying at least one-half of the vehicle’s seats (not including the driver’s seat).
Parking
Get reimbursed for parking expenses incurred at or near your work location or a location from which you continue your commute to work by carpool, vanpool or mass transit. Out-of-pocket parking fees for parking meters, garages and lots qualify. Parking at or near your home is not an eligible expense.
ABG Benefits Card
Making payments for eligible transit and parking expenses has never been easier. The benefits card allows you to avoid out-of-pocket expenses, cumbersome paperwork and reimbursement delays. Plus, one card can manage multiple account types.
Online & Mobile Access
Get account information from our easy-to-use online portal and mobile application. See your account balance in real time, file a claim for reimbursement by snapping a photo of the receipt, and check on a claim status.
FAQs
Commuter benefits help you to pay for the public transportation, vanpool, or parking that you need to get to and from work with pre-tax money – money you deduct from your paycheck before you pay taxes. Vanpool applies to transit with more than five passengers and parking benefits must be used for parking at or near work, or at or near a place where you take public transportation to work (such as at a Park and Ride).
In most cases, you can sign up any time—the benefit will be effective for the first month possible after you make your election.
Use your ABG Benefits Card to purchase tickets, passes and prepaid cards. You may also submit claims for reimbursement for incurred parking expenses, no claims can be filed for transit expenses.
The amount of money you set aside to pay for your commute doesn’t count as income, so you’re not taxed on it. By having your commuting costs automatically deducted from your paycheck, you’re actually taking home more money and giving less to Uncle Sam. It’s something you’re going to pay for anyway, so not doing it is like saying “no thanks” to free money.
- Bus, ferry, train, trolley tickets and passes
- Parking expenses: meters, garages, lots
- Vanpool fees
- Tolls
- Taxis
- Gas/fuel
- Mileage
- Business trip costs
- Airport parking fees
- Parking fees at your home
Qualified Transportation Plans allow an employee to set aside funds to be used for pre-tax reimbursement for certain "Qualified" transportation and commuter parking expenses to travel to and from work. This benefit may only be used by the employee. Eligible participants include employees that have to pay for parking where they work and/or transit commuters, whether they travel by bus, train, boat or vanpool.
Qualified Transportation Plans have two accounts:
- Qualified Parking: Parking provided to an employee at or near the employer's business premises. This also includes parking at or near a location from which the employee commutes to work by mass transit, vanpooling, in a commuter highway vehicle, or by carpool. Parking at or near the employee's home doesn't qualify.
- Transit Passes & Vanpooling Expenses: Any pass, token, fare card, voucher, or similar item entitling a person to transportation on a mass transit facility or in a highway vehicle eligible for use in vanpooling. (Vanpooling is defined as transportation to and from an employee's residence in a "commuter highway vehicle" that seats at least six adults plus the driver and at least 80 percent of the vehicle’s mileage for the year is for transporting employees in connection with travel between their residences and their place of employment).
Participants are generally allowed to change their elections on a month-to-month basis to adjust for changes in their commuter needs.
This rule does NOT apply to Parking and Transit Benefits. As long as you are an active employee of your company, balances remaining in your account can be carried forward and used for future expenses.
Please be aware that Commuter Transit expenses can only be accessed using your ABG Benefits Card. If you pay out of pocket you can not be reimbursed. Please plan accordingly. Upon termination you ABG Benefits Card will be suspended and any remaining balance in your Commuter Transit account will be forfeited. Your Commuter Parking benefits allows for claim submission. Upon termination you have until your employer's run out deadline to submit your eligible parking claims.