FlexOptions Transit Account

Simple, Innovative, Tax Savings

How Does It Work?
The Transit Plan maximizes employer tax savings through employee’s pre-tax deductions for commuting expenses. It is not subject to the “use it or lose it” penalty, so employers can determine whether unused funds are forfeited or refunded at the end of the year.

Commuting Has Never Been So Rewarding!
Tax savings through CoPower’s Transit Plan are available in two components:

• Mass Transit
  Reimburses up to $110 per month* pre-tax for transit and vanpooling expenses, such as transportation passes, tickets or tokens, and vanpooling commuter vehicle expenses associated with travel to and from work.

• Parking
  Reimburses up to $215 per month* for qualified parking benefits, such as parking at or near the employee’s place of business or the location that the employee is commuting from.

Administration Made Simple
CoPower provides employers with the claims substantiation and administration required to stay in compliance with federal laws. The CoPower Benny® prepaid card can be used to pay for eligible transportation expenses at mass transit or parking providers that accept MasterCard®. This eliminates reimbursement waiting periods by paying for qualified expenses instantly! When used at eligible transit or parking providers, the expense is automatically approved. However, participants should always save their receipts. The card can’t be used at general retailers that may sell transit passes (such as gas stations, convenience stores, liquor stores or drug stores). 

Stay In Compliance
Key rules that govern Transit Plans include:

• Plan document, Summary Plan Description and Non-Discrimination testing

• Claims Substantiation—Claims substantiation requirements vary based on plan design.  Please contact your HR department or CoPower Financial at 888.920.2322 for details.

• Mid-year election changes can be made at any time. You don’t need a qualifying event.

Transit Can “Transport” Savings Into Your Pocket!**
By contributing just $100 per month to a Transit account, an employee can save about $300 per year in payroll taxes and save their employer almost $92 per year in FICA taxes.

Without Transit Plan   With Transit Plan $2,500 Monthly Salary $2,500 $0 Monthly Pre-Tax Tranist Contribution $100 $2,500 Taxable Income $2,400 $816 Federal Taxes $784 $1,684 Take-Home Pay $1,616 $100 Transit Expenses $0 $1,584 Net Income $1,616

This table is based on a federal tax bracket of 25% and FICA at 7.65%.