What happens to CBP funds at the end of the year?
Commuter Benefit Plans are a monthly benefit and unused balances will automatically roll from month to month. There is no “use-it-or-lose-it” with a CBP at the end of the year. Additionally, there is no requirement to re-enroll each year. Elections will automatically roll until you request a change. If you are submitting a claim for […]
When can I change my CBP elections?
Commuter Benefit Plans are a monthly benefit. You can make separate mass transit and parking elections (if permitted by your employer). CBP election changes can generally be made once per month. Please confirm with your employer or review your CBP Plan Specifications for additional details and monthly cut-off dates. Any unused funds will automatically roll […]
Am I required to include any special reporting on my tax return (1040 Form) regarding contributions to the CBP?
Information about a CBP Account does not need to be reported for income tax purposes. The total earnings reported on your W-2 form will exclude any tax-free CBP payroll deductions.
Since I do not pay Social Security taxes on the money put into these accounts, will my Social Security benefits be lower when I receive them?
If you contribute over a long period of time, your contributions to a CBP Account will reduce your Social Security benefit by a minimal amount. However, the tax savings with a CBP Account should more than offset the slight reduction in Social Security benefits in future years.
What happens if I close my account?
Once an account is closed, it can no longer be used. Details regarding any remaining funds are outlined in your Plan Specifications.
Can I stop contributing to a CBP Account?
You can elect to stop contributing to your CBP Account (that is, to make a $0 election). If you are still eligible to participate, your account balance will continue to be available for use until funds are exhausted or your account is closed.
Who is responsible for determining eligibility of expenses?
Eligibility of expenses is dictated by the IRS and those guidelines are used by Benefit Resource. The services of an attorney are utilized if an additional opinion is needed or research is required to clarify the eligibility of an expense.
What happens if I do not use all the money deposited into my CBP Account in a given plan month?
Excess balances at the end of a plan month will be carried over to the subsequent plan month as long as you continue to be eligible to participate. You may adjust your monthly plan election(s) to avoid having an excess balance in a CBP Account.
Can I use my CBP Account to pay for business or personal travel expenses?
No. Only qualified expenses for workplace mass transit and parking are eligible.
Are highway tolls, commuting mileage, taxicab fares and fuel eligible?
No. Only qualified workplace mass transit and parking expenses are eligible. Costs to maintain or use your personal vehicle are not included. In order to qualify as an eligible mass transit expense, a commuter highway vehicle must seat at least 6 adults and be primarily used for transporting employees between home and work. Vanpools are […]
Once an election is made, can I change it?
Certain situations can arise which allow you to change an election. These situations include: Change in residence or worksite Change in work schedule Change in monthly workplace commuting expenses
Can money in a Parking Account be used for mass transit expenses and vice versa?
No. Money directed to one type of account can be used only for expenses relating to that account. This is true even if all the money in one account is not used and the other account runs short.
What is a Commuter Benefit Plan (CBP)?
A CBP allows an employee to set aside payroll deductions taken on a tax-free basis in separate CBP Accounts to pay for qualified workplace mass transit and parking expenses. Participants will save on federal taxes, state taxes (in most states) and FICA.
