Blog Logo
Blog Logo

Tucker Arensberg

Contact information

View All News & Insights

Mass Transit Maximum Limits Increased Retroactively for 2014

At the beginning of 2014, the pre-tax mass transit benefit was cut from $245 per month to $130 per month, while the pre-tax parking benefit was increased from $245 per month to $250 per month.  However, on December 19, President Obama signed into law the Tax Increase Prevention Act of 2014, a provision of which retroactively increases the mass transit benefit to $250 per month, in line with the current benefit for pre-tax parking.  This change is retroactive to January 1, 2014 and is in force only through December 31, 2014.  Which means on January 1, 2015, the maximum mass transit benefit is again reduced to $130 per month.

Mass transit and parking benefits are not subject to employer withholding for federal income tax, Social Security and Medicare (FICA) tax, and federal unemployment insurance (FUTA) tax.  Therefore, if you have a pre-tax mass transit benefit program for your employees, adjustments may need to be made for any employee who was required to use after-tax dollars in 2014 to pay for benefits over the $130 per month limit (up to the new $250 limit).  The IRS is expected to issue guidance regarding these adjustments in the near future.


January 08, 2015

Serving our clients successfully since 1900

The same attributes that have anchored over a century of success are still our guiding principles today.

Stay up-to-date on the latest News & Insights by subscribing to our alerts

Enter your email address below and be notified when we post new information.