Parking Reimbursement Account
The Parking Reimbursement Account lets you set aside money from your paycheck on a pre-tax basis to pay eligible parking expenses on a before-tax basis.
The Benefit
You can use funds to pay for work-related parking expenses. Eligible expenses include:
- Parking expenses at or near your worksite
- Parking expenses at a location where you commute to work, either by mass transit, qualifying commercial or noncommercial highway vehicle or carpool
- Expenses for parking, including lots and garages
How it Works
You estimate how much you expect to spend on parking expenses for the calendar year and have that amount withheld pre-tax from your paychecks throughout the year in equal weekly or monthly amounts.Claims are processed daily. You have until March 31 of the following calendar year to submit claims for expenses incurred. If you re-enroll during the Open Enrollment period, the IRS requires the remaining contributions to stay in the account. They may be used for future parking expenses and will apply to the maximum contribution above. If you do not re-enroll, the IRS requires you to forfeit all amounts that you do not use toward expenses incurred in the calendar year.
How to Enroll
New employees sign up for coverage by completing an enrollment form within 30 days from your first day of employment. All other eligible employees may sign up for coverage during the Open Enrollment period. You may also sign up at any time during the year. If you want to participate in the program each year, you must enroll each year during the Open Enrollment period. Your election will not roll forward from one year to the next.
