Qualified transportation and parking plans give employees a way to save on commuting expenses. The IRS has released new limits on contributions to these plans for 2014.
The parking limit has increased from $245 to $250 per month.
The transit benefit limit has decreased to $130 per month. As a note, the American Recovery and Reinvestment Act revised the transit benefit limit to match the parking benefit limit. This equality was initially set to sunset at the end of 2010, but was extended to the end of 2013. Presently, there is no extension into 2014, so the transit limit has dropped below the parking limit. It is widely though that Congress will take action in early 2014 to keep the parking and transit benefit limits aligned. Until that time, the decrease to $130 per month applies.