Getting to and from work every day not only costs time, it costs money.
With a pre-tax commuter benefit, you can save up to 40% on your public transportation, vanpool or parking expenses. When you sign up for a commuter benefit, you save because the money used to cover your expenses is set aside before you pay taxes on it.
Importantly, this benefit is designed to work for you. If your commuting needs change due to a move, new office, or maybe a vacation, simply change the amount you set aside each month in your account. If you’re going to be away from work for a while, you can even skip a month or two.
“My family has used a flexible spending account and a dependent care account for eleven years. We have two children, one with braces and one with a retainer. The cost of orthodontia was more than $7,000 in 2009 alone. Flexible spending accounts have allowed us to save a substantial amount on costs that are not covered by our health insurance company.”
Annual Savings: $1,400