Maximum Monthly Mass Transit Tax will Remain at $125

From your Benefit Advisors at Bollinger:


In a Bollinger Advisory distributed in January 2012, we alerted you that lawmakers failed to include any extension of the higher mass transit contribution limit of $230.  As a result, effective Jan. 1, 2012, the maximum pretax contribution employees can make toward mass transit expenses returned to the old level of $125 a month.


There was hope for a new law for 2012 that would bring the benefit up to $240, retroactive to January 1, 2012.  Earlier this year, the Senate passed a highway funding bill that included a provision for employees to reduce their taxable salaries by up to $240 a month to help pay for mass transit expenses.   Unfortunately, a transportation bill that passed the House did not include such a provision. Though Congress tried to work out the differences in the two bills, they dropped the Senate's provision to raise the transit benefit.  So it appears the mass transit benefit remains at $125 a month.




This information is for general reference only.  It is not intended to be, nor should it be treated as legal, tax or accounting advice.  Bollinger, Inc. makes no warranty (expressed or implied) or guarantee of accuracy or completeness, and will not be liable for any loss which may result from the use of or reliance on information in this e-mail.  You should consult competent legal counsel to determine legal requirements for your particular situation.