New Commuter Maximums in Effect for 2012

The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily increased the monthly pre-tax payroll deduction maximum for transit reimbursement to $230 per month. Although this increase was maintained in December 2010 to remain in place through December 2011, the government agencies have advised that the pre-tax limits will change for 2012.

As of January 1, 2012, transit monthly maximum reimbursements change to $125 per month. Any election below this amount will be paid with pre-tax payroll deductions, but any amount over the $125 limit for passes ordered for January 2012 or later will be designated as post-tax funds and may not be paid with a pre-tax payroll deduction. Amounts over the $125 maximum must be paid with post-tax deductions.

As of January 1, 2012, parking monthly maximum reimbursements change to $240 per month. Any election below this amount will be paid with pre-tax payroll deductions, but any amount over the $240 limit for parking ordered for January 2012 or later will be designated as post-tax funds and may not be paid with a pre-tax payroll deduction. Amounts over the $240 maximum must be paid with post-tax deductions