Benefits Spotlight – PreTax Transportation Benefits Plan: Parking & Transit

RCUH provides eligible employees (regular-status, 50% FTE or more) the opportunity to set aside pre-taxed funds under the PreTax Transportation Benefits Plan (PTBP) and allocate it towards qualified transportation fringe expenses such as parking or transit. Contributions will be deducted from the employee’s paycheck and deposited into their National Benefit Services (NBS) Account. Amounts contributed are not subject to federal income tax, Social Security tax, or Medicare tax. Employees access the funds from their NBS Account to reimburse themselves for eligible expenses they paid for out-of-pocket. Although balances may carry over into the next plan year, reimbursements may only be submitted for the applicable plan year.

IMPORTANT: The PTBP benefit is not advantageous for everyone. Consult your tax advisor to help you decide if this option could be beneficial for your situation. RCUH will not provide any tax advice.

Our PTBP is administered by the National Benefit Services (NBS). RCUH’s PTBP has two different accounts:

Parking Benefit – for work-related parking expenses for self only
- The PreTax Parking Benefit can be used for parking expenses incurred to park a vehicle in a lot on or near the employer’s premise or to park a vehicle at a location from which the employee commutes to work.

Transit Benefit – for work-related commuter expenses for self only
- The PreTax Transit Benefit can be used for bus pass purchases, but must be purchased one month in advance.
- Taxi, Uber, Lyft, and bike sharing expenses are not eligible at this time.

View: PTBP Frequently Asked Questions

Did You Know? The IRS determines eligibility of expenses and the maximum annual contribution limits.

Helpful Tip! The IRS does not allow funds to be transferred between the PTBP Parking Benefit and the PTBP Transit Benefit (or across the FSA Healthcare and the FSA Dependent Care accounts), so make sure you enroll into the correct account. The PTBP is not a Use it or Lose it, but you still need to submit reimbursements in the applicable plan year.