Is TransitChek like a Flexible Spending Account?
TransitChek is NOT a flexible spending account benefit. Unlike flexible spending accounts, there’s no use-it-or-lose-it penalty with TransitChek. TransitChek is authorized as a tax-free benefit under Section 132(f) of the U.S. Internal Revenue Code. Commuting costs paid for through TransitChek are not subject to federal income and FICA taxes. Employees can receive up to $230 a month in TransitChek benefits. There is also no requirement to prepare a plan or final report, as with Section 125 cafeteria plans.
