Train, bus, subway, vanpool, ferry or driving — no matter how you get to work, you can save from 25% to 40% on the cost of your commute, depending on your tax bracket. With the Morgan Stanley Commuter Benefits Program (administered by HealthEquity), you pay your transit and parking expenses with before-tax dollars and the money you save on federal, Social Security and often state and local taxes goes right back into your pocket.
You may contribute up to the IRS limit of $300 for 2023 on a before-tax basis for eligible transportation (such as bus, train, subway or ferry) and/or parking expenses.
HOW IT WORKS
- Decide how much to contribute to your HealthEquity commuter account based on your monthly public transit and/or parking expenses.
- Make monthly before-tax contributions to your commuter account.
- Pay for eligible public transit and parking expenses with easy payment and reimbursement options:
- HealthEquity contactless commuter card. Use the card where you pay for transit and parking. You decide how much money to load onto your card each month to cover your monthly commuting costs.
- HealthEquity SmartCards. Your contributions are loaded directly onto transit agency SmartCards, where available.
- Buy My Pass. Identify the pass you want to buy from a transit or vanpool agency, and it’ll be delivered to your home.
- Pay My Provider. From your online account, fill out a form to pay your transit agency or parking provider – and skip the receipts and claims forms.
- Pay Me Back. Be reimbursed for commuting expenses you’ve already paid for by direct deposit or a check mailed to you.
DID YOU KNOW?
- Your Commuter Benefit Program contributions will be deducted in full from your last paycheck of each month.
- If the cost of your commute is greater than the IRS allowable maximum, you will receive both a before-tax deduction up to the IRS maximum and an after-tax deduction for the remainder.
- You may change or stop your elections by the 10th of each month to become effective for the following month (unless you are using the express payment option). New York-area employees purchasing Long Island Rail Road or Metro-North passes must make elections by the 4th of the month.