PSW Benefit Resources Insurance Services

Transit and Parking Pre-tax Funding Maximums for 2011

Like you, we are awaiting developments on Capitol Hill regarding the transit and parking pre-tax funding maximums for 2011. You may recall that the February 2009 "stimulus" bill equalized the limits for parking and transit to $230 per month. However, under that same legislation, this is also scheduled to expire at the end of 2010.

In the absence of any legislation extending this limit and/or any IRS guidance to the contrary, the maximums effective January 1, 2011 will default to the pre-stimulus maximum pre-tax values of:

• $120.00 - Transit Monthly Maximum

• $230.00 - Parking Monthly Maximum

The possibility does exist that the current "lame-duck" session of Congress will enact legislation that addresses this issue. According to our sources, ideas on the table include (but are not necessarily limited to) the following:

• Extending the $230 limits for both parking and transit indefinitely (subject to inflationary increases)

• Lowering both limits but keeping them equalized

We will keep you updated as future developments arise.