What is a Transportation Spending Account (TSA)?
• A Transportation Spending Account allows you to put aside money on a pre-tax basis to pay for work-related commuting and parking expenses. It is an employer sponsored plan that is endorsed by Section 132 of the Internal Revenue Code. If offered by your employer, it may consist of two separate benefits, parking and transit/vanpool. Overview of the Program: If your employer offers this benefit and you elect to participate, you will elect an annual contribution which will be taken out of your paycheck on a pre-tax basis in equal amounts. This money will be available to pay for eligible work-related transit and parking expenses. For 2009, the maximum election for parking is $230 per month and effective March 1, 2009, transportation expenses will increase from $120 to $230 per month. You can submit claims for reimbursement for parking and qualified transit expenses incurred during the calendar year up to the monthly limits allowed by the IRS.
