Qualified Transportation Plans
What is a Qualified Transportation Plan (QTP)?
A Qualified Transportation Plan (QTP) is a reimbursement plan governed by IRS Section 132 that allows employees to contribute a certain amount of their gross income to a designated account or accounts before taxes are calculated. These accounts are for specified transportation and parking expenses for commuters. Only employees (not owners) are eligible to participate in a QTP.
The two types of QTP accounts are:
- Transit & Vanpooling Accounts
- Parking Accounts
What expenses are eligible for reimbursement from a QTP?
For transit accounts, any out-of-pocket expenses for passes, tokens, farecards, vouchers, or similar items; vanpooling for transportation to and from the participant’s residence in a commuter highway vehicle (one that seats at least six plus the driver).
For parking accounts, any out-of-pocket expenses for parking at or near the employer’s business premises. Also included are expenses for parking at or near a location from which the participant commutes via mass transit or commuter highway vehicle.
What is the maximum amount a participant can contribute to a QTP account?
For transit accounts, the maximum monthly contribution is $255 for 2016.
For parking accounts, the maximum monthly contribution is $255 for 2016.
These election amount can change – please refer to IRS Publication 15b for current contribution amounts.