Transportation Reimbursement Accounts - What Is It?

Transportation Reimbursement Account

A SelectAccount Transportation Reimbursement Account (TRA) allows you to set aside a portion of your salary, pre-tax, to pay for certain transit, parking and vanpooling commuting expenses. By paying for these expenses with pre-tax dollars, you decrease the amount of taxes you pay and increase your take-home pay for the year.

more affordable

If offered by your employer:

Use pre-tax dollars to pay for work-related transportation expenses.
Unused money from your SelectAccount TRA will roll over from month-to-month.
When you use a TRA, your take-home pay is increased, since the money in the account is taken out as pre-tax dollars.
Submit expenses for reimbursement within 180 days from the actual date of the expense.

Monthly reimbursement maximums for 2012 are:

$125 per month for transit passes and vanpooling combined

$240 per month for qualified parking

Monthly reimbursement maximums for 2011 are:

$230 per month for transit passes and vanpooling combined

$230 per month for qualified parking