A Commuter Benefit Account (CBA) is a tax-free benefit plan offered by an employer, where the participant/employee sets aside money to pay for eligible mass transit/parking expenses.
Who is eligible?
A participant/employee must work for an employer that offers a CBA.
What’s the benefit?
The participant/employee does not pay taxes on any money put into a CBA.
Is there a limit to CBA contributions?
Yes. The annual CBA contribution limits are as follows for 2020:
|Mass Transit||$3240 ($270 per month)|
|Parking||$3240 ($270 per month)|
What expenses are eligible to spend CBA funds on?
Eligible mass transit/parking expenses are governed by IRS Publication 15-B. Eligible expenses include but are not limited to:
- Parking meters.
- parking garages.
- MTA MetroCard.
- Ferry passes.
- Van pools.
- Bus passes.
- Ridesharing services such as Lyft Line or UberPool.
What if I do not use all of my CBA funds?
Funds in a CBA do not expire and will continue to rollover month to month, year to year. If a participant/employer leaves his/her employer, he/she will be able to spend any remaining CBA funds.