A Commuter Reimbursement Account (CRA) is a type of account into which employees can set aside pre-tax dollars that can be used to pay for eligible transportation and parking expenses.
Parking Expenses: Expenses incurred to park your vehicle on or near the business premises of your employer or to park your car at a location from which you commute to work by (a) mass transit facilities; (b) a commuter highway vehicle; or (c) carpool.
Transit Pass Expenses: Expenses incurred for a pass, token, fare card, voucher, or similar item for transportation (a) on mass transit facilities, whether or not publicly owned; or (b) provided by any person in the business of transporting persons for compensation or hire if such transportation is provided in a vehicle with a seating capacity of at least six adults (excluding the driver).
Commuter Highway Vehicle (Vanpool) Expenses: Expenses incurred for transportation in a commuter highway vehicle if such transportation is in connection with travel between your residence and place of employment. A commuter highway vehicle is any highway vehicle with a seating capacity of at least six adults (not including the driver) and for which at least 80% of the mileage is for purposes of transporting employees in connection with travel between their residences and their places of employment, and on trips during which the number of employees transported for such purposes is, on average, at least half of the adult seating capacity of the vehicle.
The maximum amount you can contribute to a CRA in 2013 is:
Please Note: If you use mass transit and pay for parking at a park and ride facility, both expenses are eligible through your Commuter Reimbursement Account as long as you do not exceed the limits for each benefit. For example, if you spend $120/month for the train and $230/month for park and ride, you can claim up to $350/month through the CRA.
Excess balances will be carried over to the following month. However, you can only spend the amount of the monthly IRS limits ($245 for parking and $245 for transit) in any given month. For example, if you have funds roll over to the next month in your parking account and your balance is $600, you can still only spend $245 in that month (the IRS limit). You have the ability to adjust future contributions to avoid having an excess balance. Check with your Human Resources department to see how often you can change your election.
Participants can use their AmeriFlex Convenience Card to pay for eligible CRA expenses, or submit a manual claim by completing the Claim Form and sending it to AmeriFlex along with applicable receipts. Please note that IRS regulations do not permit reimbursements for expenses older than 180 days from the time at which the expense was incurred.