RCUH provides eligible employees (Regular-status, 50% FTE or more) the opportunity to set aside pre-taxed funds under the PreTax Transportation Benefits Plan (PTBP) and allocate it towards qualified transportation fringe expenses such as parking or transit (bus pass or rail). Contributions will be deducted from the employee’s paycheck and deposited into their National Benefit Services (NBS) Account. Amounts contributed are not subject to federal income tax, Social Security tax, or Medicare tax. Employees access the funds from their NBS Account to reimburse themselves for eligible expenses they paid for out-of-pocket. Although balances may carry over into the next plan year, reimbursements may only be submitted for the applicable plan year.
IMPORTANT: The PTBP benefit may not be advantageous for everyone. Consult your tax advisor to help you decide if this option could be beneficial for your situation. RCUH will not provide any tax advice.
Our PTBP is administered by the National Benefit Services (NBS). RCUH’s PTBP has two different accounts:
1. Pre-Tax Parking Benefit – for work-related parking expenses for self only
2. Pre-Tax Transit Benefit – for work-related commuter expenses for self only
Did You Know? The IRS determines the eligibility of expenses and the maximum annual contribution limits. Monthly reimbursements cannot exceed the maximum contribution rate.
Helpful Tip! The IRS does not allow funds to be transferred between the PTBP Parking Benefit and the PTBP Transit Benefit (or across the FSA Healthcare and the FSA Dependent Care accounts), so make sure you enroll into the correct account. The PTBP is not a Use it or Lose it at the end of the plan year, but you only have access to your account if you have active contributions and you still need to submit reimbursements within the applicable plan year.
